Home Bitcoin News Bitcoin Mining Abkhazia Plans to Criminalize Crypto Mining as Energy Crisis Deepens— Extends Temporary Ban – Mining Bitcoin News

Abkhazia Plans to Criminalize Crypto Mining as Energy Crisis Deepens— Extends Temporary Ban – Mining Bitcoin News

6 min read

Crypto mining in Abkhazia remains to be a sizzling potato for the de facto state authorities, which is now decided to criminalize such actions. Steady huge energy disruptions, in parallel, are fueling the anger of the individuals in the direction of crypto miners.

Public Officers to Face Larger Penalties

In response to a report published by E Every day, the Abkhazian authorities revealed that it’s as a result of current a proposal to positive miners and in addition file felony costs in opposition to them.

The plan is to set fines as much as $8,000, which is a substantial sum of money, as it’s the identical yearly common earnings per particular person within the de facto South Caucasus state, equal to twenty minimal nationwide wages.

However such punishments are the bottom ones thought of within the proposal.

In reality, the federal government seeks to hit again with much more vital penalties in opposition to public servants who’re caught in crypto mining actions, in addition to firms operating rigs, with as much as 5,000 minimal nationwide wages.

Nonetheless, the report detailed the punishments that might face individuals, public officers, or companies for “repeated offenses” with regard to crypto mining actions:

For repeated committing of an administrative offense shall entail the imposition of an administrative positive on particular person entrepreneurs, authorized entities and residents within the quantity of fifty minimal wages for every kilowatt of energy of the tools related to energy grids for finishing up actions for the extraction of cryptocurrencies, with the confiscation of mentioned tools, on officers – within the quantity of 5,000 minimal wages.

Anybody who makes an attempt to attach mining rigs on energy grids to a large-scale farm in Abkhazia may face a jail time of 1 to 3 years, along with the seizing of the tools.

Authorities Prolonged Once more Its ‘Non permanent Ban’ on Crypto Mining

The federal government additionally published a decree which prolonged its “short-term ban” on crypto mining till, at the very least, March 31, 2022. As Bitcoin.com Information reported in October 2020, Abkhazia lifted its two-year ban on cryptocurrency mining.

The ban got here into impact in December 2018 after a surge in mining exercise left the area dealing with an vitality disaster. However the newest information supposed a turnaround within the final 12 months’s ban lifting.

Furthermore, in December 2020, the burnout of an influence substation provoked a large blackout throughout the de facto South Caucasus state. The state of affairs occurred amid the refusal of crypto miners to decelerate their operations within the state.

What are your ideas on the present crypto mining disaster in Abkhazia? Tell us within the feedback part under.

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