The current restrictions on the production of cryptocurrency have been extended by the government of Abkhazia (a separatist republic in Georgia). The respective amendments to the December 2020 decree were adopted by the Sukhumi cabinet. They prohibit the mining of electricity and stop imports of the relevant equipment.
De-facto states have been experiencing power shortages. had talks to the Russian Federation, their main supporter, in order to secure additional energy supplies. It has also been suggested that crypto miners are responsible for frequent breakdowns in its electrical infrastructure. The industry has been unable to be legalized and regulated due to these persistent problems.
Abkhazia started to stop crypto mining activities in 2018 The ‘temporary’ ban was extended for an additional year in April 2018. The republic’s telecom-media watchdog stated that its restrictions on internet access to miners would remain in effect for the moment.
The republic’s authorities have been pursuing crypto miners, and in September announced the seizure 6,000 units worth of mining hardware. Officials from Abkhazia acknowledged that 30,000 mining rigs were still in use, and thus admitted to a failure of the government to stop the people from creating digital currencies. This has been a popular alternative income source for many.
The government implemented fines and criminalized illegal crypto mining using electrical power in its effort to address the growing energy crisis. In June, a number of underground mining operations were closed.
Residents of Ochamchira, a region that is involved in cryptocurrency mining, marched to protest the actions taken by local law enforcement. Police raided two villages of Ochamchira to find illegal mining farms.