Many Crypto Farms in Ukraine and Russia Shut Down

Russia has been an active electricity supplier for Kazakhstan amid the electricity crisis in the destination country. One of the important reasons Russia could not meet the domestic electricity demand was using colossal cryptocurrency mining firms. However, recently the government decided to take some action regarding the misuse of electricity by cryptocurrency mining companies. It has led to the downfall of some cryptocurrency mining facilities which were using electricity stolen from the government. Apart from Russia, the same thing was done by Ukraine. These cryptocurrency mining firms are operating with stolen electricity or just settled up around the capital cities of Russia and Ukraine.

A region that is just adjacent to the capital of Russia is a place where Egypt currency mining firm was operating. The electricity used by this form was illegal from the government, and therefore, strict action came against it. The Russian law and force meant and customs agent have recently discovered this miss-use of electricity, and therefore, they decided to put a clamp on it. In shutting down these illegal cryptocurrency mining operations, many officials were involved.

One among them stated that an illegal connection was working to the power grid of a mining firm. Therefore, the theft of electricity was discovered. In addition, illegal seizure of land and operating equipment designed to perform various cryptographic calculations are now shut down. Ukraine also searched for significant cryptocurrency mining firms and other set-up units following Russia. They discovered that they were also using stolen electricity from the government, and therefore, their doors were closed.

The total amount of electricity used by different cryptocurrency mining firms illegally stored was as high as $7000 daily. Therefore, a lawsuit is registered against these cryptocurrency mining firms to be prosecuted and given the appropriate punishment. Furthermore, two cryptocurrency farms are shut down because of this recent clampdown of mining firms. Nevertheless, at the ending of October, a few cryptocurrency mining operations are going on in the mountainous regions of Russia.

Therefore, preliminary data on Yuan Pay Group-Updated platform was available about the cryptocurrency firms, and the damage they have given to the Russian economy stood at about US$13,000. Also, the local police of Russia discovered that some of the cryptocurrency mining firms allowed their miner to operate on the power grid without getting adequate permissions from the government authorities.

Earlier, there was no tax imposed on cryptocurrency mining activities. However, the bill, which includes digital financial assets in Russia, was in force in January and imposed some rules and regulations on crypto-related activities. The bill came from the Russian federation, but cryptocurrency mining and other activities were there. Therefore, the cryptocurrency mining operations to date have been imposed with any taxes in the country.

However, after discovering such a vast criminal activity by the cryptocurrency mining firms, talks are going on between the officials. It is related to imposing massive taxes on the cryptocurrency mining operations to get in line. They believe that cryptocurrency mining is an entrepreneurial activity, and therefore, taxes are to be imposed on it.

The underground cryptocurrency mining firm, which came to Ukraine, used illegal electricity and mining. According to the law enforcement agency of Ukraine, there were only three people involved in ASIC activities. It was a vast cryptocurrency mining firm, but still, it required only a few people. They have used electricity of about $128,000 with not a small amount of money to date. However, after discovering this underground plant, strict actions came against it, closed the doors. An adequate criminal procedure has also been started against these companies to track their actions and not get any licence for your currency mining.

With the rising popularity of cryptocurrencies users in the capital of Ukraine, the country has to people to do this. Also, the government has to take some essential steps to legalise the virtual assets performing their actions on the internet. Cryptocurrency mining is not banned in the boundaries of Ukraine, but it still needs to be regulated yet. The SBU has been looking after different cryptocurrency mining operation firms not to get any advantage from the illegal electricity supply. The country has also been shutting down many cryptocurrency mining firms illegally using the government's electricity.