Crypto Mining Crackdown: Abkhazia Shuts Down Eight Mining Farms

16 June 2021 | Updated: 16 June 2021

Authorities in the partially recognized South Caucasus republic, Abkhazia, have identified and shut down eight crypto mining farms over the past two weeks. This clampdown involved mining facilities that operated in breach of the country’s ban on cryptocurrency mining.

According to an official statement on the Ministry of Interior’s website, Abkhazian authorities have disconnected over 350 units of crypto mining hardware from the national grid.

The Ministry of Interior is responsible for the hunt for illegally-run mining farms in several regions across the South Caucasian republic. Authorities located three illegal mining farms in the capital city, Sukhumi, where 17 mining rigs got shut down and administrative penalties got imposed on the owners.

The authorities located three other mining facilities in Gudauta District, where 128 mining rigs got disconnected.

Meanwhile, the authorities found the largest illegal mining farm in Gali District, where 184 mining rigs operated. The local power distribution company noted that this mining farm consumed about 170 kilowatts of electricity. The authorities imposed a fine of 408,000 Russian rubles ($5,660) on the operators and promptly disconnected the firm from the grid.

During the inspection conducted in Gagra District, authorities unearthed another 17 crypto mining devices, estimated to have consumed about 28.5 kilowatts of power. As expected, these rigs got shut down and sealed.

Crypto Mining Defaulters Could Face Jail Time

The Ministry of Interior of Abkhazia conducts routine daily inspections to identify mining facilities going against the latest instated regulations in the country.

Some months back, the government in Sukhumi extended a temporary ban on cryptocurrency mining in the city to March 2022. Companies caught illegally using electrical power to mine crypto could get slammed with hefty fines or serve jail sentences.

The Russian-backed de facto state implemented these restrictions on crypto mining activities in 2018, following an energy crisis in the nation.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.