The Republic Of Abkhazia Temporarily Bans Crypto Mining Farms During Winter Season
A couple of weeks back BitcoinExchangeGuide had reported a story about Abkhazia’s state-run energy company in the country is calling for the proper regulation of crypto mining in the country as the winter draws near. The reason? To avoid letting Abkhazia getting sucked into a blackout.
There are many crypto mining farms in the country and most of them are set up on abandoned Soviet factories. The main problem for the country is that these mining farms are spending too much energy. This could lead to a blackout in the electricity of the country.
As the energy is harder to get in the Winter due to a range of local issues concerning the Black Sea, the poor country could face several power shortages because of the Bitcoin mining companies. Energy is already scarce in the country and the additional load created by the companies does not help it. There is also a major problem from stealing electricity, and 30 to 40 percent of customers pay nothing at all. The authorities must reign in both issues, to prevent the collapse of the power grid this winter.
The announcement read: “As of December 31, 2018, the resolution of the Government of the Republic of Abkhazia On temporary measures to limit the consumption of electricity by certain categories of subscribers”,
has been implemented All identified
“cryptocurrency mining farms” are disconnected from the power supply system. A total of 15 facilities were disconnected with a total capacity of 8950 kW / h. This is equivalent to the consumption of 1,800 households or equal to the consumption of the Sukhumi district. I would like to note that during the events the owners of these objects showed understanding and participation.”
Notably, regulators across the world have shown their concerns over the same problem. Towards the end of 2018, Norway ended electricity subsidies for Bitcoin (BTC) mining facilities. Lars Haltbrekken, the representative for the Socialist Left Party (SV) of Norway said:
“Norway cannot continue to provide huge tax incentives for the dirtiest form of cryptocurrency output […] [Bitcoin] requires a lot of energy and generates large greenhouse gas emissions globally.”
Their neighboring countries like Georgia and Armenia also are facing similar problems. However, the crypto farms in the countries have been plying a positive role too, utilizing abandoned real estate properties and even creating jobs.