Illegal mining of Bitcoin is one of the hottest issues in many countries that maintain a ban on this business. One of them is the Republic of Abkhazia, located between Russia and Georgia.
There, the mining of crypto coins has been illegal since 2018. However, Bitcoin’s clandestine mining activities not only continue, but are experiencing a significant boom.
It is important to note that, despite the fact that this business has been restricted in the aforementioned country, the import of equipment is not prohibited at the moment. According to local media estimates, purchases of ASIC equipment reached $589,000 in the last 6 months.
Bitcoin mining persists legally or illegally
It should be kept in mind that, like many lucrative businesses, Bitcoin mining tends to persist despite restrictions. It exists even in nations where punitive measures are harsh.
Although it is difficult to capture miners in a country with Abkhazian characteristics, the authorities have a variety of methods. Apart from the traditional ways, such as tracking of high consumption sites, there are also other ways.
In this regard, the head of consumer security in that republic, Guram Inapshba, says that allowing imports is an effective tool. Those who illegally mine Bitcoin are forced to update their infrastructure, exchanging obsolete equipment for new ones.
Thus, by importing Bitcoin mining machines, the government can keep track of where they are going, as well as who is buying them. Thus, it simplifies the „hunting“ of those who practice this business, which is qualified as illegal in this Caucasian nation.
Bitcoin mining is considered an illegal activity since 2018 according to the authorities of the Caucasian country.
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Illegality is due to lack of electrical capacity in the country
The Abkhazian government authorities, since 2018, keep the mining of Bitcoin restricted. Since then, it is considered an illegal business. The reason for this ban on mining activities, according to the government, is the country’s lack of capacity to meet the demand for electricity.
In that order, the state assures that the energy needs of the citizens should be given priority over supplying the Bitcoin mining farms. This is one of the most common arguments in those nations that keep this business as an outlaw activity.
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Why is it illegal to mine cryptosystems in some countries?
Considering Bitcoin mining to be an illegal activity, it is a weapon for governments to defend what they call their „economic sovereignty“ and to prioritize their citizens in terms of access to electricity. However, the reality could be different.
Cryptomoney in general, and Bitcoin Loophole in particular, thanks to its qualities have the ability to displace fiat currencies. If the majority of a nation’s citizens choose cryptomonies, they would be escaping the control of others.
In most countries there are no laws regulating cryptomonies, so you could say there is a limbo. In others, Bitcoin mining is illegal, but not its use. There is another group of nations where the business is legal, but trade with them is prohibited. Finally, there are other nations where the business is totally legal.
One of the most particular cases is India, where a law is being prepared that prohibits private cryptomonies completely. The fine for trade, Bitcoin mining, sale or issue, could range from $325,000 USD to 10 years in jail.