Republic of Abkhazia will lift ban on crypto mining

The President of Abkhazia, Aslan Bzhania, has indicated that the nation will lift its de facto ban on crypto mining. A Russian publication reported that Aslan’s government had plans to regulate and optimize on crypto mining.

The independent country in North West Georgia took emergency measures in December 2019 to reduce electricity consumption. Aslan stated,

Electricity crisis in Abkhazia

The young state that gained its independence in 1999 has been facing a national electricity crisis due to a surge in crypto mining farms in the Republic. The President acknowledges that even with the lifting of the ban, the country will still need up to six months for the electricity levels to get back to a normal level. Ruslan Kvarchia, the director  of Russia’s energy company, Chernomorenergo, noted,

Booming crypto mining in Abkhazia

Despite a ban on crypto mining in the country, it was still legal to import mining rigs, which has helped the trade to flourish. The state reported that it had earned about $48,100 in taxes from crypto mining activities since the beginning of 2020. According to the country’s head of customs, Abkhazia allows importing crypto mining rigs as a trap to catch illegal miners.

Crypto mining as an economic driver

Through the latest move to legalize crypto mining, Abkhazia will join the growing number of countries turning to the activity to grow their economies. Kazakhstan revealed plans that over $700 million would be injected by investors to turn the country into a crypto mining hub. However, most countries are still grappling with the high consumption of electricity due to mining.