Abkhazia Facing Energy Crisis, Government Blames Illegal Crypto Mining
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Abkhazia Facing Energy Crisis, Government Blames Illegal Crypto Mining

September 18, 2020      Jyoti Singh

The energy crisis is still a huge problem in the South Caucasus’ de facto state Abkhazia and the government believes this is happening because of the increasing crypto mining activity in the region.

Recently, Jam News published a report stating that in the year 2019, the Abkhazian government imposed the ban on the crypto mining activity but neither the companies followed the government’s decision or the local authorities. And currently, they have been consuming Abkhazia’s energy at a very low cost. 

Abkhazian Government Plans To Lift Ban

Chernomorenergo is the official company of Abkhazia that provides energy and recently, its director of operational and technological management, Ruslan Kvarchia, stated that the mining equipment’s total capacity is around 40-45 megawatts. 

He further stated, “This capacity, subject to round-the-clock consumption throughout the year, is capable of consuming about 400 million kilowatt-hours, which is the majority of the projected shortage of electricity in Abkhazia. The projected deficit for the remaining months of 2020 may amount to 704 million kilowatt-hours.”

It is to be noted that now, instead of taking any further action against the crypto miners, local authorities have decided to use a different solution this time.

The authorities have been planning to lift the ban from the crypto mining activities and allowing the miners to start operating. However, the government has mentioned that the miners would be asked to operate the mining activities in the day-light, in order to improve all parties’ communication with each other. 

Mining Activity Increasing

According to the authorities, after lifting the ban they could closely manage the mining activities in the region, in this way they would be able to save the electricity too. 

Compared to the year 2018, when all the crypto-related activities were legal in Abkhazia, the crypto mining activities in the year 2020, have increased, and as mentioned earlier, in the present time these activities are banned.

The Customs department in the region has mentioned that in the past six months, the mining hardware has crossed the nation’s border.

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#Abkhazia #Chernomorenergo #Customs department #de facto state #director of operational and technological management #Jam News #mining activities #Ruslan Kvarchia #South Caucasus
Jyoti Singh
Jyoti Singh

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.