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Abkhazia, a partially recognized republic in the Caucasus, has been struggling with illegal cryptocurrency mining for years. While blockchain and cryptocurrencies are gaining popularity around the world, in Abkhazia, their mining has become a serious threat to the stability of the local energy system. In response to this crisis, the Abkhazian authorities decided to take a drastic step – disconnecting the internet on the night of December 9-10, 2024. This decision was aimed at combating illegal mining farms that were burdening the country's already insufficient power grid.

Reasons for the decision to disconnect the internet

The decision to disconnect the internet in Abkhazia was a response to the energy crisis caused by intensive cryptocurrency mining. Deputy Prime Minister of Abkhazia, Valery Bganba, at a meeting of the Energy Security Staff pointed to the critical shortage of electricity in the country, caused by high consumption by illegal mining farms. As a result, the Abkhazian government declared a state of emergency in the country, and on the night of December 9-10, it was decided to disconnect access to the internet throughout the territory.

The scale of the problem: Illegal mining farms

In Abkhazia, cryptocurrency farms consume about 40-45 MW of energy, which translates into over 350 million kWh per year. This is half of the total electricity deficit in the region. To minimize the effects of this phenomenon, the Abkhazian authorities were forced to take drastic measures, including closing down schools and kindergartens across the country. The authorities are appealing to the parliament to introduce new laws that will effectively combat illegal cryptocurrency mining and allow law enforcement to confiscate mining equipment.

Government actions in the fight against illegal mining

The Abkhazian government has taken a number of measures to restrict the activities of illegal miners:

  • Internet disconnection: On the night of December 9-10, 2024, the authorities decided to shut down the internet throughout Abkhazia to limit the activities of illegal mining farms. Such actions, although drastic, are considered necessary to combat the growing problem of illegal cryptocurrency mining.
  • State of emergency: Due to the energy crisis, a state of emergency has been introduced, which allows for the introduction of special countermeasures, such as the confiscation of mining equipment.
  • Appeal to Parliament: Deputy Prime Minister Bganba appealed to the Abkhazian Parliament to prepare new legal regulations that will enable more effective combating of illegal cryptocurrency farms.

Effects and challenges

Abkhazia faces many challenges, including an energy problem caused by illegal cryptocurrency mining. With the country facing a severe electricity shortage, such farms, which consume huge amounts of electricity, pose a serious threat to the stability of the energy system.

At the same time, the authorities must find a way to balance the development of modern technologies with the protection of energy resources and ensuring their availability to citizens. Although the government's decisions to turn off the internet may be controversial, they are dictated by the urgent need to secure basic services in the country.

The Future of Abkhazia: Cryptocurrency Regulation

Abkhazia needs to take further steps to address the problem of illegal mining farms. New legal regulations that will allow the government to effectively control the cryptocurrency market will be crucial for the country's future. In addition, it will be necessary to create a cryptocurrency mining monitoring system that will allow for the rapid identification of illegal operations.

Summation

Abkhazia is facing a serious energy crisis related to illegal cryptocurrency mining. While the internet shutdown is controversial, it is a response to the ever-increasing energy consumption of mining farms. Abkhazian authorities must take further action to balance economic and energy needs while ensuring proper regulation of cryptocurrencies. In the longer term, it will be necessary to develop a system that allows for the potential of cryptocurrencies to be used in a controlled manner that is consistent with the country's interests.

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