The government of Abkhazia, a partially recognized republic in Northwest Georgia, looks all but set to revoke an earlier ban on crypto mining according to a report by local news agency, Sputnik Abkhazia.
In replacement of the blanket ban which was first announced in December 2018, representatives of Abkhazia’s Ministry of Economy of the Republic reportedly told the news agency that country is currently reviewing a draft bill to regulate crypto mining activities.
The draft bill currently is now in a review stage after the Ministry of Economy sent it to a higher government body identified as Cabinet of Ministers of the Republic.
Writing on the contents of the bill, the report noted that it would provide clarity regarding the “legal, economic, organizational, and technical rules” that cryptocurrency mining firms must obey if they wish to operate in Abkhazia.
More precisely, any entity operating a crypto mining firm must register with the required authorities, obtain a license, and register with the country’s revenue agency to pay taxes from their gains.
The bill will also according to the report leave the opportunity for the government of Abkhazia to impose temporary restrictions on electricity usage by crypto mining firms, especially if there is an issue with the local energy grid.
Meanwhile, it is interesting to note that when the “country banned crypto mining, it cited a need to prioritize the “provision of power supply to the population of Abkhazia, social and industrial facilities.”
That issue, however, looks to have been resolved, hence the reopening of doors for crypto miners.
In another report regarding regulation for crypto miners, we mentioned that Iran might finally remove the electricity provided for mining farms. Homayoun Haeri, Iran’s Deputy Energy Minister, is readying a policy in that regard and could enforce the harsh rule if he gets his way.