Abkhazia lifted its mining ban on Bitcoin and other cryptocurrencies in 2018. With this decision, the Abkhazian government aims to control illegal Bitcoin mining and electricity use.
Abkhazia, the controversial region between Russia and Georgia, announced that it lifted the bans on cryptocurrency mining. It was put into effect in 2018, when prohibited mining activities increased. The government of Abkhazia has decided to re-legalize cryptocurrency mining. Increasing illegal mining activities and the need to control the amount of energy used were effective behind this decision.
The government plans to keep control of the amount of electricity spent in Bitcoin mining with its regulation. According to the information published on the official website of the state, the new plan consists of two branches. These branches consist of the regulations to be introduced by the Ministry of Economy and the other is the regulations regarding the import of crypto money mining equipment.
Within 2 months within the scope of the Ministry of Economy plan; It will collect and analyze the necessary data, open an office to license cryptocurrency mining, and provide a legal and auditable framework for mining. State-backed power company Chernomoenergo will also work to determine the amount of electricity used by miners.
Mining Banned But Mining Equipment Imports Free
Abkhazia provides consumers with cheap electricity compared to most countries. For this reason, crypto money miners show great interest in the country. Abkhazia also decided to reintroduce cryptocurrency mining in order to both take advantage of this interest and take control. Especially in the country where Bitcoin mining is common, mining-induced energy collapse can easily show this interest.
Although cryptocurrency mining is illegal in Abkhazia, importing the necessary hardware for mining was not. According to data from a senior customs official, the value of mining equipment introduced into the region between January and July in 2020 exceeded 600 thousand dollars. This figure proves that, despite the ban, mining activities continue intensely.