Abkhazia government to step up detection of crypto mining farms

Abkhazia, an autonomous region in northwestern Georgia, plans to step up detection of cryptocurrency mining farms in the area.

According to a press release published on the Cabinet Office website on December 12, Abkhaz Prime Minister Valery Bangaba chaired a meeting dedicated to discussing the current state of the power grid in the region. The meeting was attended by representatives of the National Security Service, the Ministry of Economy and the state power company Chernomorenergo RUE.

The grid load has increased significantly

During the meeting, some participants noted that the increasing number of illegal cryptocurrency mining farms connected to Chernomorenergo has led to a sharp increase in the network load. In recent days, the indicator has exceeded the 40 megawatt mark.

Therefore, the Prime Minister instructed the participants to intensify the detection of cryptocurrency mines in the region. In addition, he asked the government to start developing a regulatory framework that would determine the energy consumption limits for each consumer on the Chernomorenergo grid.

Other operations targeting crypto mining farms in Abkhazia

The Abkhaz Ministry of Economy prepared a draft law on addressing cryptocurrency mining activities in the country in late June. At the time, the ministry said the draft had been approved and sent to the Cabinet. The proposed regulation defines legal, economic, organizational, and technical terms for implementing cryptocurrency mining activities in the region.

Additionally, this summer, news broke that Abkhazia was planning to build a large cryptocurrency mining farm. President Raul Khadjimba noted some of the difficulties with the initiative and said the region is “working to legalize these procedures in order to bring some revenue to the country’s budget.” Khadjimba also noted that Abkhazia already hosts mining farms illegally established by individuals.

In January, the Abkhaz government cut power to some cryptocurrency mining farms due to electricity problems.