February 15, 2023 — Abkhazia is ramping up its crackdown on crypto mining amid energy shortages being experienced during the winter months. The region’s government recently announced that it will also be taking steps to minimize the importation of mining hardware.
Abkhazia’s Ministry of Internal Affairs revealed in a recent press release that local authorities are carrying out daily raids to uncover mining facilities that are connected to the energy grid illegally and are inspecting previously closed mining farms.
The department further stated that it is keeping tabs on the individuals and companies who provide supply and maintenance services for the equipment used to mint digital coins so as to deter the importing of mining hardware in the areas within which it remains banned.
In addition, a coalition to battle illegal mining has been set up following an order from President Aslan Bzhania. The includes the leaders of the Ministry of Economy, State Security Service, Interior Ministry, State Customs Committee, and various other departments.
The coalition is led by Prime Minister Alexander Ankvab who has asked that all electrical engineers in the region research all instances of illegal mining connections to the energy distribution network, as stated within a government press service.
Ankvab stated:
“The situation in the electric power industry is extremely difficult, so the fight against mining, along with other measures, should significantly reduce the load on the infrastructure.”
Ankvab was adamant that unauthorized installations and the illegal running of transformer substations need to be eradicated with the assistance of law enforcement officials and pointed out that energy company executives have a personal responsibility to help out. The prime minister has tasked customs officials with identifying and halting any attempts at importing crypto mining equipment.
Many men and women in Abkhazia have come to rely on cryptocurrency mining as a source of supplemental income over the past few years. The government is blaming these mining efforts for the republic’s increasing energy deficit. Abkhazia temporarily banned cryptocurrency mining and the importation of mining hardware in 2018 in an attempt to manage the energy crisis. The ban was extended in 2021 and then extended once again in 2022.