Law enforcement officials in Kyrgyzstan have seized thousands of crypto mining machines as part of a new attack against illegal cryptocurrency mining in the country. Investigators have also identified industrial enterprises that are supplying bitcoin farms with electricity.
Security Service campaigns against illegal mining in Kyrgyzstan
Kyrgyzstan’s organized crime fighting agency, the State Committee for National Security (GKNB), recently found and raided many of the features of cryptocurrency mining outside the law. Special operations have been carried out in Bishkek and Chuy Oblast, the capital’s northernmost region of the country.
During the offensive against illegal mining activities, law enforcement agents have seized around 2,000 cryptocurrency mining units, the GKNB announced, quoted by Sputnik Kyrgyzstan. Pre-trial proceedings are underway, the agency’s press service added.
The state committee insisted that the process of cryptocurrency mining causes “massive damage” to the country’s electricity network. GKNB has also exposed several large industrial enterprises that supply electricity to illegal crypto farms.
Most of the raid addresses are in Bishkek, the capital of the Central Asian Republic. Some mining equipment has been seized from industrial facilities located in the Bishkek Free Economic Zone. The police are currently working to establish all persons involved in the corruption scheme.
Government in Bishkek takes steps to regulate crypto industry
In August 2020, the Ministry of Economics put forward Bill Regulating the taxation of bitcoin mining in Kyrgyzstan. According to the proposal, 15% tax will be levied on the cost of electricity consumed for carrying digital coins. The law obliges mining companies to apply for registration which is legally required to operate in the country.
In January this year, the National Bank of the Kyrgyz Republic announced that it was preparing two Draft law To regulate local cryptocurrency exchanges. According to Bank, The bills are introducing a series of measures aimed at reducing the risk of money laundering and terrorism financing. The trading platform required the government to report its activities.
Cryptocurrency has enjoyed increasing popularity in Kyrgyzstan over the past year. Decentralized digital currency is seen as a new investment opportunity and also as an alternative solution for cross-border payments. Last October, the country’s central bank suspended Swift transfer and banking activities between anti-government protests.
What are your views on the aggressive attitude of the government against the crypto mining farm in Kyrgyzstan? Let us know in the comments section below.
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