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Abkhazia extends ban on crypto mining

Abkhazia

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TL;DR

TL; DR Breakdown

  • Abkhazia keeps a ban on crypto mining till the end of the year
  • The country has been having electricity issues
  • Regulators clamp down on illegal miners

The government, in conduct with authorities in the partially recognized republic of Abkhazia, has announced that the ban on crypto mining activities will not be lifted. Citing an issue related to power supply, the energy-rich country is restricting miners from carrying out their activities till the end of the year. The ban was previously in place but has now been extended to the end of the year.

Abkhazia has been battling electricity issues

The country has previously had a decree in the same effect since 2020, and this new update is an addition to the previous law. The first decree signaled the end of mining activities using electricity. It also mandated authorities at the ports to halt hardware used for such activities. There have been growing issues in Abkhazia over matters about electrical supply in the country in the last few months.

The government even deliberated with Russia to figure out ways to increase the additional power supply. The country has suffered a breakdown in electricity supply in the last few months, an unfortunate incident that has been blamed on the strain caused by mining activities. The recurring issues with electricity were one of the reasons why the country put a stop to these activities to try to figure out a way to regulate the space.

Regulators clamp down on illegal miners

Abkhazia has been taking huge strides to eliminate excess mining issues in the country for about five years now. Last year April, the government announced that it had extended a previous temporary ban on these activities. In October, the telecommunications regulator maintained that crypto miners would not be afforded internet access to carry out their activities. Regulators in the country have also been clamping down on unregulated miners, with about 6,000 units of mining equipment being seized in September.

In the same vein, officials of the regulatory body still maintained that illegal miners are still putting about 30,000 mining rigs on the electricity in the country. This comes after it admitted that it could not curb people from mining as they have seen it as a substitute means of making money. In a bid to further curb these activities, the government announced a penalty for illegal usage of electricity for mining purposes. Some of the residents in Abkhazia have protested the raid and seizure of their mining rigs.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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