The government of the Republic of Abkhazia has issued an instant ban on cryptocurrency and digital asset mining. The government has also mentioned that it will hunt down the violators.
It is to be noted that the Republic of Abkhazia is largely unknown, spread over a very little area of around 8,660 sq km. Moreover, it has a population of around 240,000. Notably, it is recognized as an independent state by Russia and other nations. However, it is considered by the United Nations to be part of the Central Asian nation of Georgia.
Interestingly, Georgia is one of Eurasia’s most notable mining heavyweights. It is home to massive state-run mining centers. These mining centers are operating in conjunction with companies like BitFury. Furthermore, Abkhazia residents have proven themselves just as keen as their neighbors, for cryptocurrency and digital assets.
Nonetheless, Abkhazian power providers earlier this month acknowledged that “transmission lines and substations are loaded to capacity” as cryptocurrency and digital asset mining farms in the region continue to ramp up their operations.
Fears of nationwide blackouts appear to have now forced the government to act, with winter temperatures falling. The Abkhazia government has passed a new mining law, effective immediately, as per state news agency Apsnypress. Notably, the legislation allows the republic’s security services, state-run energy provider, and the Ministry of the Interior to seek out and compulsorily shut down farms that do not close the shutters immediately.
It is to be noted that the government has claimed that the measures are temporary, and may be repealed once providers give their consent. Power companies have also been banned from allowing cryptocurrency and digital asset mining ventures to purchase excess electricity. The aforementioned excess electricity is notably generated at the republic’s large Soviet-era hydroelectric plants.
With Russian villagers also suffering blackouts as a result, CIS-area enthusiasts seem to have lost none of their enthusiasm for mining, in spite of a global downturn.