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The law enforcement committee from Kyrgyzstan has seized almost 2000 Illegally operating crypto mining units from the country’s capital city Bishkek. This is not the first time that the authorities have raided the units. In the past also several units have been seized by the police.
Illegal Crypto mining has become a nuisance for the people of Kyrgyzstan. Several issues have resulted in increasing illegal mining activities. The law enforcement committee has confiscated thousands of crypto mining machines as part of the new offensice against illegal cryptocurrency mining in the country.
The State Committee for National Security (GKNB), Kyrgyzstan’s organised crime-fighting agency, has recently raided several facilities mining cryptocurrencies illegally.
The operation was conducted in the country’s capital Bishkek and Chuy Oblast, which is the northern region of the country. During the offensive against illegal mining, the agency has seized almost 2000 cryptocurrency mining units, said GKNB, as per Sputnik Kyrgyzstan.
Unprecedented damage on electricity network
The proceedings are underway. Meanwhile, the process of cryptocurrency mining has put on colossal damage on the country’s electricity network.
As per the report filed by GKNB, many big industrial enterprises were involved in illegal mining activity. These large enterprises had supplied electrical power to illegal crypto farms. The number of cases is mostly reported from Bishkek and some of the mining devices are seized from the Bishkek Free Economic Zone. The police are working to establish a connection between the individuals that have been involved in the corruption scheme.
More cases discovered earlier
This is not the first time that the cases of illegal crypto mining have come to light. In yet another incident, officers of the State Committee for the National Security of Kyrgyzstan have found six mining farms in the Bishkek and Chui region that were illegally connected to the power grid.
Large industrial units were installed which were providing electricity for the operation of the mining farms illegally. The latter received surplus profit from electricity consumption, as per the official statement.
They were found in Druzhba village, Chui region, on Valikhanov, Tabaldiev Streets in Bishkek and on the Frunze plant in a free economic zone.
Regulations against illegal mining
There were several steps taken to regulate the crypto industry in Bishkek. A bill regulating taxation of Bitcoin mining in Kyrgyzstan was also introduced in August 2020. The Ministry of Economics proposed a 15% tax be imposed on the cost of the electricity consumed to mint digital coins.
To operate legally in the country, the legislation has asked to apply for registration. The regulatory authorities, the National Bank of Kyrgyz Republic in January 2021 has also announced the preparation of two draft laws that will regulate local cryptocurrency exchanges.
These bills will focus on reducing the risk of money laundering and terrorism financing that are bound to happen in the crypto market. As per the bank, the bill will have many measures to curb fraudulent activity. The exchanges need to report their trading activities to the government.
Kyrgyzstan has always welcomed the trading of cryptocurrency in the country with open arms in the past. The country is also looking forward to decentralized digital money as a new investment opportunity and also as an alternative solution to cross-border payments.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
