Although Bitcoin mining is not as simple as before, many people interested into mining industry due to high value of Bitcoin price. In fact, mining was easy in early days. You just need a high-performance CPU or GPU in order to mine Bitcoin. But these days you need ASICs, which cost much higher than CPU or GPU in order to be able to participant in Bitcoin mining process. Many institutions and individuals invested high amount of money in mining industry. But they always face with issues with governments. In fact, the most common issue is the electricity power. The mining hardware consumes high amount of energy and always face the government with electricity supply issues. In the latest news, illegal mining is getting popular in the republic of Abkhazia.
Illegal Mining Is Getting Popular; mining rigs are importing to Abkhazia
Although any activity related to cryptos are illegal in Republic of Abkhazia since 2018, this country is witnessing a significant growth in crypto mining activities. Statistics show that mining rigs and hardware, which worth over $589000 crossed the Abkhazia borders over the past six months.
Same as other countries, Abkhazia doesn’t have a clear position about cryptos. In fact, they banned any activities since 2018, but they allow people to import mining hardware. In fact, they allow importing in order to control and identify illegal miners and also earn some amount of money from taxes.
Nuzhnaya Gazeta said that importing mining rigs to Abkhazia will remain legal. In fact, the government make some amount of money due to taxes. All the importers must pay 1% tax and 10% as VAT.
The statistics show that over $84100 earned from crypto mining rigs, which imported to a largely unrecognized state in the South Caucasus in the year 2020.
Illegal miners still keep working
Guram Inapshba is the head of the national customs committee. He mentioned that they allowed importing miners in order to identify and hunt the illegal crypto miners.
Inapshba noted, foreigners are not involved in the crypto mining industry in Abkhazia. The people who involved in the imports are the citizens of Abkhazia.
In December 2018, Abkhazia government banned all crypto mining activities due to the lack of electricity supply in the country. The government mentioned that the population of Abkhazia are in the priority for supplying powers rather than crypto miners.
However, miners still keep mining cryptos illegally and don’t pay attention to government notices.