Republic of Abkhazia is witnessing a surge in cryptocurrency mining activities despite crypto-related activities being illegal since 2018. Customs have reported that mining hardware worth over $589k has crossed the border over the past 6 months.
In line with Nuzhnaya Gazeta, importing cryptocurrency mining rigs remains legally permissible. Importers are required to pay taxes adequate to 1% of the hardware’s worth along with a VAT of 10%.
The largely unrecognized state within the South Caucasus, which is taken into account by several countries as an “autonomous republic” of Georgia, states that they’ve earned over $84,100 in taxes just from cryptocurrency mining rig imports since the beginning of this year.
Hunting Illegal Crypto Miners
The head of the national customs committee, Guram Inapshba, added that they permit the imports so as to “hunt” for illegal crypto miners.
Inapshba clarifies that no foreigners are involved inside the country in terms of operating or funding cryptocurrency mining activities, but he says that there are “several dozen citizens” of Abkhazia involved within the imports.
Earlier in December 2018, the govt. banned all crypto mining activities, citing a scarcity of capacity within the country’s electrical system. They also noted the necessity to offer “priority power supply to the population of Abkhazia.”
Recently, the Bolivarian National Guard of Puerto Ordaz, Venezuela, seized 315 Bitcoin [BTC] mining machines manufactured by Bitmain. The owners of the mining rigs were told that they didn’t possess the required permits to have and operate the equipments.