Crypto mining is still banned in the Republic of Abkhazia because the country’s de facto government had further extended the ban. The Government is also exploring the possibility of criminalizing the crypto mining industry operating within the country because of the deep energy crisis. Mining is causing a shortage of electricity and load shedding in mining hot spots.
The Republic of Abkhazia is one of those states where the crypto mining industry has been very active. In less than two years, at least 625 new crypto mining farms have emerged in various parts of the country. Resultantly, there is an acute shortage of electricity within the country causing energy disruptions as well as long hours of load shedding.
In order to curtail crypto mining activities, the de facto government administering the affairs of the state had imposed a ban. Though there is some relief acquired by the state against crypto mining activities, yet it is not enough to fulfill the energy crisis.
As per a fresh report published by the state officials energy crisis has further deepen its roots. Because of the presence of the pandemic, there is a shortage of domestic as well as foreign investment. Therefore, for the time being, no new power plants are being established in the country. While the crypto industry is booming and therefore the mining farms are required to produce more cryptocurrencies.
The government has extended its ban upon crypto mining activities. Furthermore, it has been reported that the government is looking at the possibility to deal with crypto mining farms legally. For this purpose, government officials have suggested the state to incorporate laws.
Now a statement has been published by the Abkhazian government which was published by local news outlets such as E Daily. It was reported that the government has formalized a crypto proposal. In this proposal, the government has suggested imposing fines upon crypto mining farms and farmers. Furthermore, along with the fines, criminal proceedings too can be initiated against the violators and non-compliant crypto mining farms/farmers.
It was told further that fines would be heavy and maybe to the tune of US$ 8,000. However, it is not confirmed yet whether this is the final figure. It may be subject to decrease or increase, as the case may be, once the final proposal is out and approved.
The Government has also revealed in the proposal that with regard to crypto mining activities still these extraordinary measures are not enough. In fact the punishments are still lesser, told the Government.
It has been reported that the Government intends to take up the matter with crypto miners very seriously. In addition, the Government also noticed that there were several public officers who too were involved in crypto mining activities. The Government warned further that the consequences would be much severe if it found any public officers’ involved.