Abkhazia launches crackdown on illegal cryptocurrency mining to solve energy crisis

The de-facto Ministry of Internal Affairs of Russian occupied Georgian region of Abkhazia announces that daily monitoring is underway to prevent the operation of cryptocurrency mining farms in Abkhazia, where hundreds of bitcoin mining machines are being turned off every week.

Cryptocurrency mining is currently banned in Abkhazia until June 1, 2021 as the operation of the machines is in part to blame for the region’s energy crisis. 

In addition it is prohibited to import the equipment needed to generate cryptocurrency.

TRT World, a Turkish state-owned news channel, reports that in the last few years, Abkhazia has seen at least 625 new crypto farms, which require vast amounts of energy to run, according to estimates from its economy ministry.

In addition, the Enguri HPP, which is the main electricity source for Abkhazia has been shut down for repairs for three months already.

• How is the Enguri HPP shutdown affecting Abkhazia’s power supply?

Georgia and its Russian-occupied region Abkhazia jointly operate the hydropower plant and distribute the electricity it generates.

According to an informal agreement between the sides, Abkhazia consumes 40% and Georgia consumes 60%.