Georgia is the home of one of the biggest bitcoin mining companies in the world, Bitfury. The country is the fourth leading producer of digital currency from crypto mining. Nonetheless, Georgia’s income from crypto-related activities such as trading and mining doesn’t reflect in their trade balance reports.

The International Monetary Fund (IMF) has reportedly suggested measures to address this issue. Since a notable percentage of the country’s economy consists of crypto-related activities, the agency said Georgia should include the income from these activities in their annual foreign trade balance reports.

The IMF recommends Georgia to ensure transparency when accounting for crypto mining. Though Georgia is among the leading countries in crypto production, its income from the industry is still unknown.

The agency had already met and advised large crypto mining companies to take records of their crypto sales to foreign parties. The IMF considers its activities as a form of export since the locally mined cryptos are sold to foreign entities. In order to uphold transparency, the agency claims those activities must be accounted for.

The IMF is currently collaborating with Georgia on improving statistics and methodologies for calculating the trade balance. They are also discussing the introduction of accounting in crypto mining activities. These developments will assist Georgia in accounting for their crypto-related income in order to address the IMF’s request for transparency.

IMF believes that Georgia’s government must acknowledge the crypto mining industry since it comprises a notable portion of its economy.

Georgia imports equipment like application-specific integrated circuit devices for mining which is reflected in their trade balance. Meanwhile, their export of digital currencies is left out. The country’s foreign trade balance reports become inaccurate; as imports are accounted for, whereas exports are not. This ultimately led the IMF to suggest its recommendations to the country.

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