The Republic Of Abkhazia Is Looking To Draft Laws for Regulating Crypto Mining
Cryptocurrency mining in Abkhazia has been a nuisance for their government for quite some time now. In December of 2018, many state-run energy companies were calling for the regulation of crypto mining activities, it seems like their calls are being answered now.
Crypto mining farms in the country, which are mostly located in deserted Soviet factories, are using a significant quantity of electricity. Consequently, it is feared that the unreliable electrical network in the poor country which is located the eastern coast of the Black Sea may not be able to meet high demands in the country, especially during winter.
So, the government had banned crypto mining in the winter. The new legislation allowed the republic’s state-run energy provider, the security services and the Ministry of the Interior to seek out and forcibly close farms that do not shut down immediately, bringing “both individuals and companies” to justice.
However, these laws were seen as draconian to many. To combat these issues, the Ministry of the tiny unrecognized republic, which is often seen as a part of Georgia to Sputnik news that they have drafted a bill which will be sent to the Cabine of Ministers.
Abkhazia has become a hot destination for crypto mining because of the fact that electricity is cheap. Additionally, it is seen as a resolution to the economic distress of the tiny republic with a population of nearly 250,000 people and a GDP per capita of approximately $2,000 USD.
Their neighboring country Georgia, which has land disputed with Abkhazia is one of Eurasia’s most notable mining heavyweights, home to massive state-run mining centers, operating in conjunction with companies like BitFury.