Abkhazia finds illegal facilities to extract digital currency even though the government has imposed criminal and financial penalties for cryptocurrency mining. Law enforcement officers have taken dozens of illegal cryptocurrency farms’ mining equipment this week.
Abkhazia Seizes Mining Equipment, Shuts Down Crypto Farm
Abkhazia police have shut down another cryptocurrency mining facility in the rural region of the Georgian republic. The Ministry of Internal Affairs reported that the illicit coin minting facility was in the village of Yashtuha (Sukhumi).
On Wednesday, May 16th, representatives of the interior ministry raided the crypto farm in response to a tip.
Khanchalyan Robertovich (a 29-year old local resident) has been charged with mining. The 31 machines he operated were confiscated by the government and moved to an authorized warehouse.
Many Abkhazians are now using crypto mining to earn an additional income in the last few years. The government of the partially recognized republic in the South Caucasus has blamed the energy-intensive process for the territory’s growing electricity deficit.
The Russia-backed defacto state placed a temporary ban in 2018 on hardware and crypto mining imports to address the shortage of power. It was then extended for another year to March 31st 2022. Then, it was extended again in April and continued until the close of the year.
Sukhumi’s authorities have also imposed severe fines and criminal penalties for those who use electricity illegally to create cryptocurrencies. Mining is believed to be the main cause for the frequent breakdowns of the republic’s power distribution network.
Since then, officials in Sukhumi admit that they have not been able to stop crypto mining. Last summer, reports revealed that Abkhazia held negotiations with Russia to resolve its problems with electricity. The government planned to also regulate the mining activity to ensure miners can legally connect to the grid.
Are you optimistic that Abkhazia will legalize cryptocurrency mining after it has overcome its power shortages? Please leave your feedback in the comment section.
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