
Authorities in Abkhazia decided to keep a ban against cryptocurrency mining within the territory. A South Caucasus republic that is partially recognised has imposed restrictions on the extraction of energy-intensive digital currencies. They cited problems with the power supply.
Bitcoin Mining remains prohibited in Abkhazia
Abkhazia is a Georgian separatist republic that has extended current restrictions to the production of cryptocurrency coins until 2022. The cabinet of Sukhumi approved the amendments to the December 2020 decree, which prohibited the mining of electricity and prevented imports.
According to the de facto state, it has struggled with power scarcity and met with Russian Federation (its main supporter) in order to get additional energy. The frequent failures of the electrical infrastructure were also blamed on crypto-miners. The industry has been unable to be legalized and regulated due to these persistent issues.
Abkhazia started to stop crypto mining activity in 2018 Last April, the “temporary ban” was extended for another year. In October, the republic’s telecom and media watchdog said its restrictions on internet access for miners will also remain in place for the time being.
In September, the authorities announced the confiscation of 6,096 units of crypto mining hardware. Officials from Abkhaz also acknowledged the existence of 30,000 remaining mining rigs, admitting that they were not able to stop the people creating digital currency, which is a popular alternative source of income.
The government has introduced penalties and criminalized illegal crypto mining. This was in response to the growing energy crisis. Numerous underground mining operations were stopped in June.
After police raids on illegal mining operations in two districts, Ochamchira residents involved in cryptocurrency mining protested the actions of local law enforcement.
Is there a place for cryptocurrency mining to thrive in Abkhazia, do you think so? Comment below to share your opinions.
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