20 October 2020
The de facto state of Abkhazia has revoked its decision on the crypto mining ban. Abkhazia’s president has recently announced measures for lifting the current crypto ban.
As per Finanz.ru, the president, Aslan Bzhania said that the government is planning to bring the “the most optimal mechanism” to regulate crypto mining, rather than maintaining the state’s current prohibition on blockchain-related activities.
In the same week, the director of operational and technological management of the state’s official energy company, Ruslan Kvarchia, marked that crypto mining is a major reason behind the current energy crisis affecting Abkhazia.
Bzhania shared his views related to this,
“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 stated that “it's not easy,” when he is questioned on how he will bring back the country’s power system to normal levels. He said with proper planning and framework it will at least take up to six months to overcome the crisis.
There was an increase in crypto mining activities in 2020 even though there was a ban on crypto-related activities since 2018. The customs have come up with the report which shows mining hardware worth over $589,000 has crossed the nation’s border over the past six months.