News & Updates

Despite the Ban, Illegal Crypto Mining Recorded in the Republic of Abkhazia

Despite the ban of crypto-mining in 2018, The Republic Abkhazia has seen showing an incline of related activities, all now deemed illegal.

In several reports of the nation’s customs, mining hardware worth went over $589, 000and crossed the border in the last six months. The news said as well that it obtained over $84,100 in taxes just from crypto mining rig imports since the start of 2020.

Where is the Republic of Abkhazia?

 If one would Google, it’s a small and (so-called) autonomous state within the country Georgia. It lies just east of the Black Sea and Greater Caucasus mountains. This region is also known for its wine and resorts. In terms of financial highlights, it recorded the short-terms US-dollar and Euro deposits at 18%.

Banned Cryptocurrencies

 In December 2019, the Prime Minister of Abkhazia Valeri Bganba led the shut down of crypto-mining transactions after meeting with various sectors of the nations including the State Security Service, Ministry of Economy, among others.

During this meeting, it was found out that a significant climb of electric loads was recorded because of cryptocurrency. The farms were identified to be in Chernomernergo, where 40Mwatt was reported.

The consensus also of the meeting allowed to monitor and guide the government to regulate the energy consumption of any blockchain-based activities.

Before December, Abkhazia initiated efforts as well as integrated plans to facilitate crypto-mining activities within the country. In June, the Ministry of Economy law was drafted to support this/

These judiciary moves were all in the hopes for the state to add some revenue to the national budget thru legitimizing processes in terms of cryptocurrency.

On the other hand, Guram Inapshba, the head of the national customs committee said they still allow imports to hunt the illegal crypto miners. Although as per their records, no foreigners are directly linked to these underground economies a handful were locals.

Ongoing efforts are made by the government to reduce and cease illegal operations in compliance with the ban.

Leave a Comment

Leave a Reply