On December 16, the Abkhazian parliament passed in the first reading draft laws for a complete ban on cryptocurrency mining and criminal liability for such activities, as reported by TASS.
Both documents aim to ensure the rational use of the republic’s limited energy resources.
The first draft prohibits cryptocurrency mining, as well as the circulation, use, advertisement, and import of related equipment or components into Abkhazia. These measures apply to individuals, legal entities, and individual entrepreneurs.
The second draft outlines penalties for circumventing these restrictions.
Importing mining devices, connecting to networks, and consuming electricity exceeding 30 kWh for cryptocurrency mining are punishable by imprisonment for one to three years, along with the confiscation of equipment.
The fines vary based on the number of confiscated miners: up to five units incur a 50,000 ruble fine, while more than five units result in a 20,000 ruble fine per device.
The prohibition on mining activities was first introduced by Abkhazian authorities in December 2018. However, clear sanctions against violators were not established, resulting in most miners effectively not paying for consumed electricity.
Since 2020, the republic has imposed temporary restrictions on cryptocurrency mining and the import of related equipment, extending them annually. Authorities also approved fines and criminal liability for such activities.
Earlier, ForkLog reported that illegal miners had become the main cause of the energy crisis in Abkhazia, prompting attempts to disconnect the internet across the region to combat them.