Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices – Mining Bitcoin News

Law enforcement authorities in Kyrgyzstan have confiscated thousands of crypto mining machines as part of a new offensive against illegal cryptocurrency mining in the country. Investigators have also identified industrial enterprises that have been supplying the bitcoin farms with electricity.

Security Service Conducts Operation Against Illegal Mining in Kyrgyzstan

The State Committee for National Security (GKNB), Kyrgyzstan’s organized crime-fighting agency, has recently found and raided a number of facilities mining cryptocurrency outside the law. The special operation has been conducted in the capital Bishkek and Chuy Oblast, the country’s northernmost region.

During the offensive against illegal mining activities, law enforcement agents have seized around 2,000 cryptocurrency mining units, GKNB announced, quoted by Sputnik Kyrgyzstan. Pretrial proceedings are underway, the agency’s press service added.

Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices
Ala-Too square in Bishkek.

The process of cryptocurrency mining inflicts “colossal damage” on the country’s electricity network, the state committee emphasized. GKNB has also uncovered several large industrial enterprises supplying electrical power to illegal crypto farms.

Most of the raided addresses are in the capital city of the Central Asian republic, Bishkek. Some of the mining devices have been seized from industrial facilities located in the Bishkek Free Economic Zone. The police are currently working to establish all individuals that have been involved in the corruption scheme.

Government in Bishkek Takes Steps to Regulate Crypto Industry

In August 2020, the Ministry of Economics put forward a bill regulating the taxation of bitcoin mining in Kyrgyzstan. According to the proposal, a 15% tax will be imposed on the cost of the electricity consumed to mint digital coins. The legislation obliges mining companies to apply for a registration which is needed to operate legally in the country.

Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices
National Bank of…

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