Abkhazia became the capital of illegal cryptocurrency mining

Abkhazia became the capital of illegal cryptocurrency mining
CONTENT

  • Abkhazia remains the epicenter of illegal cryptocurrency mining

  • The authorities levy taxes on the import of mining equipment

  • Underground mining harms citizens and organization

International consortium of news organizations developing transparency standards.

Since the beginning of the year, mining equipment worth $ 589,000 has been imported into the country. This is reported by the customs service of the unrecognized republic. It should be noted that officially crypto-activities on the territory of Abkhazia have been banned since 2018. However, this does not prevent underground miners from mining cryptocurrencies..

Abkhazia became the capital of illegal cryptocurrency mining

The police know but are silent

Over the past six months of 2020, mining equipment worth $ 589 thousand was imported into the territory of Abkhazia. Despite the fact that the authorities prohibit any operations with cryptocurrencies, the mining of bitcoin or ether in the republic is not prohibited. The only condition for the import of cryptomining equipment is the payment of taxes in the amount of 1% of the cost of the equipment, as well as VAT, which is 10%. The authorities of the unrecognized republic claim that since the beginning of the year the treasury has been replenished by more than $ 84 thousand due to tax deductions.

Guram Inapshba, head of the National Customs Committee, said they allow imports to “hunt” illegal cryptominers. Exactly how officials are hunting illegal miners, Inapshba did not explain.

In December 2018, the government banned all types of crypto mining, citing a lack of capacity in the country’s electrical system. They also noted the need to ensure “priority energy supply to the population of Abkhazia”.

Abkhazia became the capital of illegal cryptocurrency mining

Underground mining is still popular

Despite the fact that many countries are gradually legalizing the mining of cryptocurrencies, this does not prevent underground miners from using the technical power of victims’ computers to organize illegal mining of cryptocurrencies. Earlier BeInCrypto reported that several super computers around the world were infected with a hidden mining virus.

The first report of a hacked supercomputer system came from staff at the University of Edinburgh. They reported “using security at ARCHER login nodes.” Due to the incident, it was decided to close the computer system.

Later, reports of unauthorized entry into the supercomputer system came from Germany, the state of Baden-Württemberg. There, due to intrusion into the work of computers, five clusters had to be closed at once.

Illegal household mining also harms property owners. BeInCrypto already wrote that in the city of Artem, Primorsky Territory, an investigation into the case of a miner who started a fire in the house in which he lived at night has ended. Now the criminal case has been brought to court, and the hapless hunter for cryptocurrencies will have to answer for the “destruction of property by negligence.” Property – both other residents and the common house – burned down a lot. The total amount of the claim is about 53 million rubles.

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