Argentina’s Tax Collection Agency (AFIP) has completed its first-ever operation against illegal and “covert” cryptocurrency mining farms operating in the country, the agency announced last week.
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- AFIP has conducted four raids against other purported commercial crypto farms, beginning in the state of San Juan on Tuesday and ending in Buenos Aires on Friday.
- According to local news outlet iProUP, two farms have been discovered in the city of Cordoba. Digiconomist’s Bitcoin Energy Consumption Index estimates that it takes about 1,450 kWh to complete one bitcoin transaction. That’s roughly 48 days of power for an average US home.
- To obfuscate the machine’s energy use, a group of illegal miners in San Juan hid it inside a giant fruit refrigerator at an agricultural facility.
- According to an August press release, the South American country has recently attracted cryptocurrency miners such as Bitfarms, a Nasdaq-listed mining company, which has already built a 50-megawatt farm in the country and plans to do so next year. is planning another farm.
- In February, Argentina ended subsidies on electricity provided to crypto mining companies, and Cammesa, the country’s wholesale electricity market management company, also increased electricity tariffs for crypto farms.
- Many miners choose to operate illegally to avoid large taxes and take advantage of subsidies. According to iProUP, at least one farm had him over US$200,000 in undeclared income in the last seven months.
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