The Republic of Abkhazia is witnessing a surge in crypto extraction, even though crypto activities have been illegal since 2018. The customs authorities have reported that mining equipment worth more than 589,000 dollars has crossed the border in the last six months.
According to Nuzhnaya Gazeta, the importation of crypto mining equipment is still legally permitted. Importers are required to pay taxes of 1% of the value of the equipment and VAT of 10%.
The unrecognized state of the South Caucasus, which is considered by several countries to be the "autonomous republic" of Georgia, claims that since the beginning of 2020 it has earned over 84,100 dollars in taxes only from the import of mining equipment.
Guram Inapshba, head of the national customs committee, declared that he allows imports to "hunt" for illegal crypto miners.
Inapshba explains that there are no foreigners in the country involved in carrying out or financing activities related to the extraction of crypto materials, but says that "several dozen citizens" of Abkhazia are involved in importing.
In December 2018, the government banned all activities related to the extraction of crypto materials, citing the lack of capacity in the country's electrical system. They also pointed out the need to ensure "priority electricity supply for the people of Abkhazia".
