Local police have uncovered an illegal crypto mining operation utilizing electricity in the additional space of the hotel Banguriani in central Mestia, Svaneti region in Georgia. Electricity theft has been almost equal to the electricity consumption of approximately four to five villages.
Recently, Georgia has gained significant attention from the crypto industry as a favorable destination for cryptocurrency mining. Affordable electricity prices and crypto-friendly tax policies attract miners from all over the world to Georgia to mine for cryptocurrencies.
Police Busts Illegal Crypto Mining Operation in Georgia
In Georgia’s Mestia region, electricity consumption has drastically increased, especially during last year. The main reason for this is establishing large scale crypto mining machines in the area, stealing a large amount of electricity.
As claimed by the energy company Energo-Pro Georgia, the Mestia district consumes electricity for about 12-14 sections. The reason for such high electricity bills and growing crypto mining operations in the region has been due to Mestia municipality residents not paying for their electricity bills.
In 2020, Georgia took 3rd place, only behind China and Venezuela, making it one of the world’s leading destinations in cryptocurrency mining.
Georgia Is a Popular Crypto Destination
In 2019, Georgia’s government department, the Ministry of Finance, even published a crypto-friendly regulation on taxes applicable to cryptocurrencies in Georgia.
For instance, if an individual becomes a Georgia resident, he will not be subjected to income tax received from cryptocurrency sales. The same also applies to VAT, which does not apply to such a transaction. The country also does not participate in the automatic exchange of financial information while guaranteeing assets’ confidentiality.
Meantime, the sale of computing hash power from Georgia is also not subjected to VAT. However, there is a right to reimburse incoming VAT on such transactions. Simultaneously, the sale of hash power within the country is an operation subjected to VAT.
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