- Abkhazia now plans to regulate crypto mining rather than banning it.
- The country prohibited mining activities in 2018 amid electricity challenges.
- The president said it might take up to six months to formulate a better approach to optimize power supply.
The current prohibition of crypto mining in Abkhazia may not last for a long time. The government has recently disclosed that it is looking to introduce a better regulatory mechanism for digital currency mining in the country, instead of banning them completely. Abkhazia prohibited cryptocurrency mining in the country about two years ago, saying that the electricity system was not compatible with the activities.
Abkhazia to revoke the ban on crypto mining
The President of the Republic of Abkhazia, Aslan Bzhania, made this known during a meeting on Thursday. Given that Bitcoin and other crypto mining requires high energy to power the machines, the government had to ban the activities in late 2018, as it imposed a heavy load on the country’s electrical system.
However, the prohibition of crypto mining activities in the country wasn’t as effective as the government had planned, because the number of mining farms in the country continued to surge, as the president explained. Most of the cryptocurrency miners could operate illegally, which still affected the country’s power system.
Abkhazia moves to solve the electricity problems
As a result, the government now seeks ways to regulate the crypto mining industry rather than continuing with the current ban on them. The president precisely said:
Now we are working on accounting and identifying the points where these mines are installed, it will not be possible to hide anything. […] A government decree is being prepared, which will outline the most optimal mechanisms to regulate this process. We will not prohibit it [mining], the state will regulate it properly. This is also the first stage in solving energy problems.
While speaking on the country’s electric system challenge, the president admitted that it won’t be an easy task to do. He added that improving the country’s power system would require a serious approach, which might take up to six months to formulate.