The Parliament of Abkhazia adopted in the first reading a bill that prohibits the mining of cryptocurrencies and introduces criminal liability for violating this ban.
The new bill adopted in Abkhazia affects both mining and the circulation, use, advertising and import of equipment intended for the extraction of cryptocurrencies. Writes about this TASS.
Context and reasons for the ban
Cryptocurrency mining was banned in Abkhazia back in 2018. However, crypto mining activities were still partially permitted – mainly through the use of energy from private power plants.
However, problems with power grid overload and energy shortages forced the country’s authorities to take more drastic measures. Since 2020, they have introduced a temporary ban on the import of mining equipment. This ban was extended every year.
Punishments for violating the ban included administrative fines and confiscation of mining equipment, which was transferred for storage to the State Standard of Abkhazia. Now parliament wants to introduce tougher sanctions, including criminal liability.
Speaker of the Parliament of Abkhazia Lasha Ashuba emphasized that the extraordinary measures are related to the difficult situation with electricity in the republic.
Locals burn ASICs
In the meantime, how writes one popular Telegram channel, in the Abkhazian village of Adzyuzhba, local residents burned ASIC miners seized from their neighbors at the stake.
Earlier, information appeared in the media that the authorities of Abkhazia are planning temporarily disable the Internet at night. All this is for the sake of fighting illegal miners.
Innovations in the bill
The new bill, adopted in the first reading, includes a complete ban on cryptocurrency mining, circulation, use, advertising and import of mining equipment into the territory of Abkhazia.
Illegal miners – both legal entities and individuals – may be subject to criminal liability. For moving mining devices across the customs border of Abkhazia and connecting and consuming large amounts of electricity – more than 30 kWh – for crypto mining, violators face imprisonment from one to three years with confiscation of equipment.
In addition, for having up to five devices for mining cryptocurrency, a fine of 50 thousand rubles will be imposed with confiscation of the equipment. If a person has more than five units, the fine will be 20 thousand rubles for each device, and the equipment will also be confiscated.
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Source: Cryptocurrency
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