Kyrgyzstan has announced plans to brandish the ban hammer on 2,000 miners who are using taxpayer money to mine Bitcoin and other cryptocurrencies. The mining equipment will be dismantled, and the miners will be prosecuted, both electricity- and water-wise, though the mining equipment itself will not be seized. This comes as the landlocked country is facing a 7% deficit as a result of its plunging economy, although this seems to have as little to do with cryptocurrency mining as one might expect, and more with the country’s struggles to obtain oil and gas resources.
The government of Kyrgyzstan has taken a tough stance against cryptocurrency mining, seizing nearly 2,000 desktop computers designed to mine bitcoin and other digital currencies. The government began seizing computers in the city of Osh in southern Kyrgyzstan in April, but the latest round of seizures took place in the country as a whole. The computers were seized in raids on apartments and private homes carried out by the police in the capital of Bishkek.
As Bitcoin’s value has skyrocketed in recent months, the number of cryptocurrency mining devices in the country has also increased—but this may now be causing them to do more harm than good. According to local news sources, Kyrgyzstan’s State Committee for National Security has seized 2,000 mining machines from a farm in the country, which was operated by a Russian company.Kyrgyzstan’s law enforcement authorities have seized thousands of cryptocurrency mining machines in a new campaign against illegal cryptocurrency mining in the country. The researchers also identified the industrial plants that provided electricity to the Bitcoin farms.
Security service conducts operation against illegal mining in Kyrgyzstan
The State Committee for National Security (SCNS), the body for combating organized crime in Kyrgyzstan, recently discovered a number of companies mining cryptocurrencies outside the law and raided their premises. The special operation was conducted in the capital Bishkek and in Chui oblast, the northernmost region of the country. Law enforcement agencies have seized about 2,000 cryptocurrency mining machines during a crackdown on illegal mining activities, SCNS reported, citing Sputnik Kyrgyzstan. The preliminary investigation is ongoing, the agency’s press office added. Ala-Too Square in Bishkek,. Cryptocurrency mining is causing massive damage to the country’s power grid, the state commission said. The SCNS also discovered several large industrial companies feeding illegal cryptocurrency farms. The most sought-after addresses are in Bishkek, the capital of the Central Asian republic. Some mining equipment was seized from industrial facilities in Bishkek’s free economic zone. The police are currently trying to identify all those involved in the corruption case.
Bishkek government takes steps to regulate crypto currency
In August 2020, the Ministry of Economy submitted a draft law regulating the taxation of bitcoin mining in Kyrgyzstan. The proposal provides for a 15% tax on the cost of electricity used for the digital minting of coins. The legislation requires mining companies to apply for registration, which is necessary to operate legally in the country. National Bank of the Kyrgyz Republic. In January this year, the National Bank of the Kyrgyz Republic announced that it was preparing two bills to regulate local crypto-currency exchanges. According to the bank, the bills introduce a number of measures to reduce the risks of money laundering and terrorist financing. Trading platforms were required to report their activities to the government. Over the past year, cryptocurrencies have become increasingly popular in Kyrgyzstan. Decentralised digital currencies are seen as a new investment opportunity and as an alternative solution for cross-border payments. Last October, the country’s central bank suspended SWIFT transfers and banking activities following anti-government protests. What do you think of the government’s attack on cryptocurrency mining companies in Kyrgyzstan? Let us know your comments in the section below.
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Bishkek, bitcoin, bitcoin farms, crypto, crypto mining, cryptocurrencies, electricity, GKNB, industrial enterprises, Kyrgyzstan, miners, mining, mining equipment, mining machinery, offensive, operation, rules, security service. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The Kyrgyz government has seized more than 2,000 mining devices and PCs containing mining software, according to a report in local news site Digi.kg. The news site reported that the devices were seized at a Kyrgyzstan customs office in the southern city of Batken. The devices were confiscated by Kyrgyz customs officials.. Read more about bitcoin bank news and let us know what you think.
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