Local police have uncovered a crypto mining operation illegally consuming electricity in the auxiliary 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-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 increased dramatically especially during last year. The main reason for this is the establishment of large scale crypto mining machines in the area, stealing a large amount of electricity. According to energy company Energo-Pro Georgia, Mestia district on an average consumes electricity for about 12-14 districts. The reason for such high electricity bills and growing crypto mining operations in the region have been due to the residents of Mestia municipality 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 resident of Georgia, he will not be subjected to income tax received from the sale of cryptocurrency. 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 the confidentiality for assets. Meanwhile, 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. While the sale of hash power within the country is an operation subjected to VAT.
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