The de facto state of Abkhazia has thrown in the towel in its fight against cryptocurrency, as the president recently announced measures to lift the current ban in the country.
According to Finanz.ru, Aslan Buzania said on Thursday that his government plans to introduce an “optimal mechanism” to regulate cryptocurrency mining, instead of supporting the current government ban on blockchain-related activities.
Earlier this week, Ruslan Kvarchia, director of operations and technology at State Energy Corporation, named cryptocurrency operations as one of the key factors in the current energy crisis that has hit Abkhazia.
Commenting on this situation, Buzzania said:
We are now working on calculating and determining the points where these mines were located, and it will not be possible to hide anything. (…) A government decree is being drawn up which will determine the optimal mechanisms for organizing this process. We will not ban it [mining], the state will regulate it properly. This is also the first phase in solving energy problems ”.
“It’s not easy,” Byzania said when asked how he plans to restore the country’s energy system to normal levels. He added that even with the appropriate framework in place, it will probably take six months to overcome the crisis.
Abkhazia saw an increase in cryptocurrency mining in 2020, according to a Cointelegraph report in July, although cryptocurrency-related activities have been illegal since 2018. Customs said more than $ 589,000 in mining equipment crossed the country’s border in those months. The last six.