The post Abkhazia Clamps Down on Crypto Mining Amid Energy Crisis appeared on BitcoinEthereumNews.com.

Abkhazia, a self-proclaimed republic on the Black Sea, has intensified its crackdown on cryptocurrency mining, targeting both large and small operations. The government has shut down numerous large-scale mining farms in response to severe electricity shortages that have fueled ongoing societal and political challenges. Despite these efforts, the region continues to grapple with power scarcity as winter approaches, affecting daily life and essential services. In recent months, Abkhazia’s energy ministry, led by First Deputy Prime Minister Dzhansukh Nanba, declared that all significant crypto mining farms had been dismantled. However, smaller miners continue to operate, often tapping into the grid illegally, making it difficult for authorities to fully eradicate mining activities. “While cryptocurrency mining still exists, the main issue comes from the large farms,” Nanba stated. These farms, once prolific throughout the nation, have been notorious for consuming vast amounts of energy, contributing significantly to power outages across the republic. Power Shortages and Regional Impact The history of crypto mining in Abkhazia is complex, marked by a series of bans and allowances. Even though the government temporarily allowed mining in 2020, the country’s delicate electrical grid was put under stress as energy demand skyrocketed. Because of its antiquated infrastructure and regular maintenance needs, the Inguri hydropower facility, which Abkhazia shares with neighboring Georgia, has not been able to meet local demand. Although the plant technically produces sufficient electricity for Abkhazia, substantial transmission losses reduce the supply that reaches consumers. Abkhazia’s economy, heavily reliant on Russia, has also seen a surge in electricity demand from miners attracted by the region’s exceptionally low electricity costs—less than one cent per kilowatt-hour. This pricing, a legacy of past conflicts, remains deeply ingrained and is politically challenging to adjust, with attempts to raise rates often met by public protests. In a bid to stabilize the power…

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Filed under: News - @ November 11, 2024 12:21 pm