Abkhazia Extends Crypto Mining Ban Till End of Year
Authorities in Abkhazia have decided to maintain a ban on cryptocurrency mining in the territory. The partially recognized republic in the South Caucasus is restricting the energy-intensive extraction of digital currencies, citing problems with power supply. Bitcoin Mining Remains Prohibited in Abkhazia
The government of Abkhazia, a breakaway republic in Georgia, has prolonged current restrictions on the minting of cryptocurrencies until the end of 2022. On April 1, the cabinet in Sukhumi adopted the respective amendments to its decree from December 2020, which banned the use of electricity for mining and halted imports of relevant equipment.
The de-facto state has been struggling with power shortages and held talks with the Russian Federation, its main supporter, to ensure additional energy supplies. Frequent breakdowns of its electrical infrastructure have also been blamed on crypto miners. The persistent problems have postponed a plan to legalize and regulate the industry.
Abkhazia began to curb crypto mining activities back 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.
Authorities in the republic have been going after crypto miners and announced the seizure of 6,000 units of mining hardware in September. At the same time, Abkhaz officials acknowledged that an estimated 30,000 mining rigs remained in operation, thus admitting a failure to prevent the population from minting digital currencies, which has become an alternative income source for many.
In its efforts to deal with the deepening energy crisis, the government introduced fines and even criminalized the illegal use of electrical power for crypto mining. A number of underground mining operations were shut down in June.
Last summer, residents of Ochamchira region involved in cryptocurrency mining took to the streets to protest the actions of the local law enforcement, after police conducted several raids against illegal mining farms in two villages in the district. Tags in this story Abkhazia, ban, Bitcoin mining, breakdowns, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deficit, Electricity, equipment, Georgia, Hardware, imports, Miners, mining, power, Republic, shortages
Do you see a future for cryptocurrency mining in Abkhazia? Share your thoughts on the subject in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Bitcoin Mining Startup Primeblock to Go Public via SPAC Merger as SEC Targets SPAC Deals MINING | 22 hours ago Northern Data"s Bitcoin Mining Fleet Adds 21,000 ASIC Rigs, Firm Holds $168M in Crypto Assets MINING | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSneaker Giant Adidas and Ready Player Me Partner to Launch AI-Generated Avatar Creation Platform 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 More Popular NewsIn Case You Missed ItUS Bond Markets Signal Economic Downturn, Trend Forecaster Says if War Ensues "Odds of Recession Increase"
As Americans continue to deal with rising inflation, on Tuesday the spread between 2-year and 10-year Treasury yields inverted, signaling the U.S. economy may be headed for a recession. This week, a myriad of financial reports have noted that the ... read more.19 Million Bitcoin Have Been Mined Into Circulation, 2 Million Left to Be Found Sanctions Motivate Russia to Create Own Crypto Market Infrastructure, Finance Ministry Says Study: 10% Growth in Crypto Market Cap Reduces Value of African Firms by 0.76% Vaneck Report Calculates Bitcoin Price Could Tap $4.8M if BTC Becomes the Global Reserve Currency