February 1, 2023

Opinion: IMF requirement on accounting for Georgia's bitcoin mining income impossible

On the eve of the International Monetary Fund made a request to the Government of Georgia to take into account income from mining in the reports on the country's foreign trade balance.

According to the IMF, Georgia ranks fourth in terms of bitcoin mining and mining accounts for a significant share of its economy.

"The import of mining equipment is taken into account in the official statistics of the trade balance, but ignoring exports significantly distorts the overall picture." - believe in the fund.

To assess this data on the sale of cryptocurrencies, the IMF has prepared a special questionnaire, which should guide the official departments of Georgia.

However, local experts deny the country's leading position in the mining market.

“We are not in fourth place. God grant that on the tenth, and then in doubt, " - Founder and CEO of Bitcoin Embassy Georgia Alex Sudadze said in a comment to ForkLog.

According to him, the fund’s initiative is meaningless, and now the Blockchain Association in Georgia is looking for experts who will be able to explain to the IMF the “real state of affairs”.

Experts are convinced that an attempt to take into account how much cryptocurrency Georgian companies and citizens of the country sell abroad is unlikely to succeed.

“There are many mining companies and individuals in Georgia that are not registered anywhere, and cryptocurrency exchange transactions often take place outside exchanges,” - said the founder of the company of environmentally friendly mining Golden Fleece Vakhtang Gogokhiya.

There is no mechanism for identifying private miners in the country, agrees Giorgi Avaliani, representative of the Birtvi blockchain company.

“Technically implementing the IMF requirements is veryIt’s difficult, because the government will not be able to fix exactly who is engaged in mining, what their turnover is and where they sell their bitcoins. Reliable information about this will be only from a few large companies that work in the country ”, He believes.

The IMF pilot project so far concerns only two large mining companies, confirms Vakhtang Gogokhiya.

“Information is requested from the“ daughter ”of emoney.ge, the cryptocurrency exchange MyCoins.ge, as well as the mining company Bitfury. But to audit the information they provide will be quite difficult. ” He points out.

Currently in GeorgiaThere are two energy-efficient Bitfury data centers with a total capacity of over 60 MW. According to local experts, this represents 4% of the total electricity consumption in the country.

The company recognizes itself as the largest Bitcoin miner in Georgia, without disclosing, however, hash rates.

Representatives of Bitfury did not comment on ForkLog how the IMF initiative will affect their activities, promising to later issue an official statement on this subject.

ForkLog requested comments from the MyCoins.ge cryptocurrency exchange, but did not receive a response at the time the material was released.