Abkhazia state-owned power firm bans all crypto mining – Modern Consensus

Abkhazia state-owned power firm bans all crypto mining – Modern Consensus

The “national” power company of the breakaway Georgian region Abkhazia has ordered  an immediate stop to all local cryptocurrency mining activity.

Power firm Chernomorenergo’s general director Mikhail Valerievich Logua, an Abkhaz politician, has signed an order imposing “the immediate shutdown of all operating farms for the extraction of cryptocurrencies” in Abkhazia, according to a Dec. 25 report by Russian industry news outlet Forklog.

Recognized only by Russia, Abkhazia fought a war of secession with Georgia in the ‘90s, declaring independence in 1999, according to the CIA World Factbook.

The Chernomorenergo action follows a recent announcement by Russian power firm Rosseti that the firm fears that record high Bitcoin (BTC) prices may spur a new wave of illegal cryptocurrency mining operations threatening Abkhazia’s energy grid.

The document signed by Logua imposes a stop of all cryptocurrency mining activity by Dec. 29. The order also gives the heads of Chernomorenergo and electricity distributor Energosbyt personal responsibility for “unauthorized technological connection to the power grid of all subscribers for the purpose of mining cryptocurrencies.”

Earlier this month, Forklog also reported that Deputy Prime Minister of Abkhazia Christina Ozgan announced an order for the shutdown of all mining farms in the republic until June 1, 2021.

The reason for the shutdown is that in mid-September, a boom of crypto mining activity in the region caused an energy crisis, according to local news outlet Jam reported.

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