Cryptocurrency mining in Abkhazia is still a hot topic in the de facto state government, which is now determined to criminalize such activities. At the same time, continuous large-scale power outages are exacerbating people’s anger against crypto miners.
Public officials will face greater penalties
According to a report in “E Daily”, the Abkhazian government revealed that this would be a proposal to fine miners and bring criminal proceedings against them.
The maximum fine for this plan is US$8,000, because in fact the average annual income of everyone in South Caucasus is the same, which is equal to 20 times the minimum national wage.
However, this penalty is the minimum penalty considered in the proposal.
In fact, the government is trying to impose harsher penalties on civil servants suspected of engaging in encrypted mining activities, as well as companies that operate drilling rigs with a minimum national wage of 5,000 or more.
However, the report details that people, public officials, or companies may be punished due to “repetitive crimes” in crypto mining activities:
Those who repeatedly commit administrative violations shall impose administrative fines on entrepreneurs, legal persons and individual citizens, the amount of which shall be the minimum wage of 50 per kilowatt of power for the equipment connected to the power grid for extraction activities. In the case of the seizure of the above-mentioned equipment, officials were charged 5,000 minimum wage cryptocurrencies.
Anyone who tries to connect mining equipment on the grid to a large farm in Abkhazia could face one to three years in prison and seize the equipment.
The government once again expanded the “temporary ban” on crypto mining
The government also issued a decree extending its “temporary ban” on cryptocurrency mining until at least March 31, 2022. As Bitcoin.com News reported in October 2020, Abkhazia lifted its two-year ban on cryptocurrency mining.
The ban came into effect in December 2018 after a surge in mining activity put the region facing an energy crisis. But the latest news shows that last year’s ban was lifted.
In addition, in December 2020, the burning of the substation triggered a massive blackout in the de facto South Caucasus. This happened because cryptocurrency miners refused to slow down business in the state.
What is your opinion on the current crypto mining crisis in Abkhazia? Let us know in the comments section below.
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