Fun

Abkhazia Holds Talks With Russia to Ensure Electricity Supply for Crypto Miners

News Feed - 2021-07-24 05:07:49

Abkhazia Holds Talks With Russia to Ensure Electricity Supply for Crypto Miners


The government of Abkhazia is negotiating with Russia to solve a problem that led to a ban on cryptocurrency mining. The partially recognized republic in the South Caucasus is now planning to legalize the industry and source sufficient power supplies from its energy-rich northern neighbor. Abkhazia Wants to Create Conditions for Cryptocurrency Mining


The autonomous Republic of Abkhazia in northwestern Georgia is holding talks with the Russian Federation on the supply of electricity to satisfy its needs. Those of the energy-hungry crypto mining sector are also covered by the negotiations, Forklog reported.


Despite a temporary mining ban introduced in 2018, the activity allegedly took the country to the brink of an energy crisis last year, forcing regulators to extend the restrictions to March 2022. Fines and criminal liability were introduced for illegal use of electrical power to mint digital currencies and a number of mining operations were shut down.



Officials in Sokhumi are now trying to create conditions for cryptocurrency miners to operate legally, Abkhazia’s Minister of Economy and Deputy Prime Minister Christina Ozgan revealed at a press conference this week. Quoted by Apsnypress, she said that authorities plan to organize the supply of electricity from Russia and set up facilities where miners can install their equipment.


Russian representatives have already visited the republic to clarify the technical side of the deal and the Abkhaz government has received a draft agreement, Ozgan told reporters. She emphasized that electricity shortages were the main reason for the crypto mining crackdown.


According to estimates by the local power distribution company, Chernomorenergo, the total capacity of the mining equipment operating in the republic was at least 40 to 45 megawatts in 2020. When fully loaded, the hardware can burn around 400 million kilowatt hours of electricity annually, which forms a large portion of the country’s deficit.


Christina Ozgan also announced that more than 66,000 mining devices had been delivered to Abkhazia before the imports of mining equipment were halted. She added that authorities are now going to approve a new electricity tariff for cryptocurrency miners and encourage them to pay their bills.


Abkhazia wants crypto mining farms to be legally connected to the electrical grid. The government also intends to regulate the interaction between mining entities and the state-run power utility.


Do you think Abkhazia can turn into a friendly destination for cryptocurrency miners? Tell us in the comments section below. Major Crypto Mining Company Core Scientific Going Public on Nasdaq With $4.3 Billion Valuation MINING | 3 days ago Russian Crypto Industry Scrambles to Attract Miners as Kazakhstan Overtakes Russia in Mining Volume MINING | 5 days ago Tags in this story Abkhaz, Abkhazia, ban, crypto miners, crypto mining, deficit, Electricity, Energy, legalization, Miners, mining, Negotiations, power, Russia, Supplies, Supply, talks


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Dogecoin Price Closes In On Major Trendline For Breakout To $1
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
UK Bank Starling Blocks Payments to Crypto Platforms — Claims Crypto Is High Risk, Heavily Used for Criminal Purposes
UK Bank Starling Blocks Payments to Crypto Platforms — Claims Crypto Is High Risk, Heavily Used for Criminal Purposes Starling Bank has informed its customers that the bank no lo
Zhiyuan Sun4 hours agoBIS develops framework against CBDC cyberattacksThe institution cited rising exploits against DeFi as a need for more secure CBDCs.1470 Total views1 Total sharesListen to article 0:00NewsJoin us on
Bitcoin Faces Persistent Resistance at $100K, Analyst Eyes Next Step
Este artículo también está disponible en español. Weeks after hitting an all-time high above $109,000, Bitcoin’s price remains under pressure. It is currently trading b
Meme Token Economy Climbs 14% in 2 Weeks — DOGE, SHIB Command 83% Dominance
Meme Token Economy Climbs 14% in 2 Weeks — DOGE, SHIB Command 83% Dominance Toward the end of this week, crypto-assets rebounded in value after meandering for two weeks and conso
In Response to Bitcoin, Central Bank of Brazil Presents Instant Payment System Pix
In Response to Bitcoin, Central Bank of Brazil Presents Instant Payment System Pix Banco Central do Brasil has started testing a new payment network with the promise to offer Bra
Blockstack’s STX Token Now Traded on Binance and HashKey Pro
Blockstack’s Stacks (STX) token can now be traded on the Binance and HashKey Pro exchanges, the company said Wednesday. The advance is set to expand investors’ access
Top Fed Official Says US Central Bank ‘Actively’ Debating Digital Dollar
A top Federal Reserve official said Wednesday that the U.S. central bank is “actively looking at and debating” issuance of a digital currency, amid growing worries among current and former regulators that the
Russia Prepares to Create Government-Controlled Crypto Exchange
Russia Prepares to Create Government-Controlled Crypto Exchange Lawmakers in Russia are drafting legislation that would allow the establishment of a “national cryptocurrency exch
Robert Kiyosaki: I’m Still Bullish on Bitcoin — Crypto Cannot Be Blamed for FTX Collapse
Robert Kiyosaki: I"m Still Bullish on Bitcoin — Crypto Cannot Be Blamed for FTX Collapse The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, is still b
William Suberg9 hours agoAI has potential to send Bitcoin price over $750K — Arthur HayesThe coming years will be explosive for AI, and even more so for Bitcoin, says the former BitMEX CEO.10139 Total views11 Total sha
Toncoin (TON) gains 10% after Binance Launchpool platform addition
Nancy Lubale1 hour agoToncoin (TON) gains 10% after Binance Launchpool platform additionGrowth in its DeFi ecosystem and the upcoming Binance Launchpool addition have put wind in Toncoin’s sails.145 Total views1 Total