Abkhazia, an autonomous region in northwest Georgia, is planning to intensify the works on the identification of cryptocurrency mining farms in the region.
According to a news release published on the Cabinet of Ministers’ website on Dec. 12, Prime Minister of Abkhazia Valeri Bganba held a meeting dedicated to the current state of the region’s electricity grids. The meeting saw the presence of representatives of the State Security Service, the Ministry of Economy, and the state electric utility Chernomorenergo RUE, among others.
During the meeting, some of the participants brought to notice that the significantly increased loads on electric networks are aggravated by the emergence of ever-greater number of illegal cryptocurrency mining farms connected to Chernomorenergo. In recent days, indicators have ostensibly exceeded the 40 Mwatt mark.
As such, Bganba gave the meeting participants the directive to intensify the works on the identification of cryptocurrency mining farms in the region. Apart from that, Bganba requested that the government begin the development of a regulatory framework, which would enable determining the limitation of energy consumption for each consumer of Chernomorenergo’s electric grids.
The Ministry of Economy of Abkhazia developed a law draft on the settlement of cryptocurrency mining activities in the country, in late June. At the time, the Ministry said that the drafted bill had been approved and sent to the Cabinet of Ministers. The proposed regulation defines legal, economic, organizational and technical rules for the implementation of cryptocurrency mining activities in the region.
Moreover, this summer, news broke that Abkhazia was planning to build a large cryptocurrency mining farm. President Raul Khadjimba pointed out some difficulties in regards to the initiative, and said that the region was “trying to legitimize these processes so that they bring some revenue to the country’s budget.” Khadjimba also pointed out that Abkhazia already hosted facilities illegally established by individuals.
In January, the government of Abkhazia cut power to some cryptocurrency mining farms due to electricity concerns.