Cryptocurrency mining has become a thriving industry with various notable advancements. While many crypto enthusiasts continue to enter the mining market, regulators across some nations are on a completely different page. One such nation is Abkhazia, where cryptocurrency mining remains a controversial topic, with the de facto state government now looking to criminalize such activities.
According to a report from E Daily, regulators in Abkhazian are eyeing the criminalization of cryptocurrency mining as a result of massive power disruptions in the nation that are fueling the anger of the people towards crypto miners.
As such, lawmakers are set to propose a fine of up to $8,000, which is almost the same as the average yearly income per individual in the de facto South Caucasus state, equal to 20 minimum national wages. However, the fine is just the tip of the iceberg.
The regulators also seek to impose bigger and more significant fines on public servants who are caught in crypto mining activities, along with companies that run crypto mining hardware, with up to 5,000 minimum national wages.
The report went on to explain the punishments that defaulters could face, for “repeated offenses” in regards to crypto mining activities:
“For repeated committing of an administrative offense shall entail the imposition of an administrative fine on individual entrepreneurs, legal entities and citizens in the amount of 50 minimum wages for each kilowatt of power of the equipment connected to power grids for carrying out activities for the extraction of cryptocurrencies, with the confiscation of said equipment, on officials – in the amount of 5,000 minimum wages.”
Anyone attempting to operate mining farms using the nation’s power grid would be looking at jail time of one to three years, while all equipment would be ceased.
Bad history with Mining
As previously reported by The Daily Chain, the nation had banned cryptocurrency mining in December 2018 after the nation faced an energy crisis. In December 2020, there was a massive blackout across the nation as a result of crypto miners refusing to slow down their crypto operations.
Despite the ban, crypto miners have illegally continued operations. In July 2020, a report from Nuzhnaya Gazeta revealed that the nation had seen a surge in illegal crypto-mining operations with over 80 consignments worth approximately USD 589,290, found crossing the Abkhazia-Russia border checkpoint at Psou.