Abkhazia, an autonomous but disputed territory between Russia and Georgia with only 245,000 people, has lifted a two-year ban on cryptocurrency mining. In December 2018, they put the ba after the region faced an energy crisis following an increase in mining activity.
The government is now trying to control the industry to crack down on illegal miners. And the amount of electricity used in bitcoin mining. According to the website of the official cabinet of Abkhazia, the new project will include a two-month history of the regulation of the Ministry of Economy and the import of crypto mining equipment.
Interestingly, while mining was outlawed, Abkhazia did not stop the import of crypto mining hardware. This year between January and July, about 600000 dollar worth of mining rigs was imported, revealed by one of the customs officials. It means that mining activities were not stopped under the ban.
For crypto mining, the economy’s ministry will produce a lawful and monitoring framework over the next 60 days. It will include a workplace to collect and investigate statistics and offer licenses. The amount of energy used by miners, including their prices, is determined by the state power utility “Chernomoenergo.”
In Abkhazia, electricity prices are comparably low than in other countries. Users pay comparable of 0.05 dollars per kilowatt-hour of electricity. It caused a considerable number of miners to drive to the region. Before the conflicts that pitted Russia, Georgia, and Abkhazia itself-rule, it was once a centre for tourism. Now Georgia entitlements control over the country.
The government said on its website that under the Interim Code of Cryptocurrency Mining Activities, legal and organizational, and technical rules have been laid down for the implementation of cryptocurrency mining activities in the land of the Republic of Abkhazia, which is usually obligatory.
The shadow economy of bitcoin mining nurtured so much that the power grid came close to collapse again in September. According to the reports, the Abkhazia government decided that it would be better to authorize and control mining to prevent a total energy breakdown. The consumption of energy by crypto mining is not known.
Abkhazia has lifted a two-year ban on cryptocurrency mining. The ban came as a result when mining farms took the region to the edge of an energy disaster.
The republic of Abkhazia has restarted its crypto mining glory. According to the Abkhazia official cabinet website, the new organization will include rule by the finance ministry and a two-month constraint on importing the mining apparatus.
During this period, for crypto mining, the economy’s ministry will produce a lawful and monitoring framework, including a workplace to collect and investigate statistics and offer licenses.
Similarly, “Chernomoenergo,” the state power authority, will set the rules for the sum of electricity consumed by these businesses.
After the farms threatened to use all of Abkhazia’s electricity, in 2018, the cabinet ministers banned mining. “Because of the low price of electricity, Abkhazia became a centre of crypto mining,” Jam news said.