Abkhazia to lift ban on crypto mining

Published at: Sept. 18, 2020

The de facto state of Abkhazia threw the towel on its fight against crypto mining, with the president recently announcing measures to lift the nation’s current ban. 

According to Finanz.ru, Aslan Bzhania stated on Thursday that his government plans to introduce “the most optimal mechanism” to regulate crypto mining, rather than maintaining the state’s current prohibition on blockchain-related activities.

Earlier this week, Ruslan Kvarchia, director of operational and technological management of the state’s official energy company, pointed to crypto mining as a major driver behind the current energy crisis affecting Abkhazia.

Commenting on this situation, Bzhania said:

“Now we are working on accounting and identifying the points where these mines are installed, it will not be possible to hide anything. (...) A government decree is being prepared, which will outline the most optimal mechanisms to regulate this process. We will not prohibit it [mining], the state will regulate it properly. This is also the first stage in solving energy problems.”

Bzhania said “it’s not easy,” when asked how he plans to bring the country’s power system back to normal levels. He added that even with the proper framework, it will likely take up to six months to solve the crisis.

As reported by Cointelegraph in July, Abkhazia had witnessed a surge in crypto mining activities in 2020, despite crypto-related activities being illegal since 2018. Customs have reported that mining hardware worth over $589,000 has crossed the nation’s border over the past six months.

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