Abkhazia to build a large crypto mining firm, its president reveals

Abkhazia, a partially recognized state on the coast of the Black Sea, intends on building a large crypto mining facility. The state’s president, Raul Khadjimba revealed that his government has been working on the mining firm but had run into a few snags. However, he was still committed to pushing on with his crypto plans.

In an interview with the Russian Federal News Agency, Khadjimba touched on various issues affecting the economic and political growth of the state. Asked about rumors that had emerged claiming the state was to build a crypto mining firm, he stated that his government is trying to legitimize the mining process. The aim is to bring in additional revenue for the country’s budget. Unfortunately, the government had run into some difficulties while implementing the plan.

However, Khadjimba gave an assurance that the crypto mining plans would materialize sooner rather than later. He believes that the state will benefit a lot from the practice. He also pointed out that there were individuals who were conducting mining activities in the state, but he wants the government to be at the forefront of such activities.

The news comes just days after reports emerged indicating that the state was lining up regulations for the crypto industry. According to a statement by the Ministry of Economy, a draft law had been prepared and was waiting for the necessary authorization.

“The bill defines legal, economic, and organizational and technical rules for the implementation of mining activities in the republic,” part of the statement read.

If passed into law, it will require individuals or firms involved in crypto business to register as legal entities or entrepreneurs. They will also be required to register with the revenue authorities as taxpayers before they can be granted a crypto mining license.

The draft also contains provisions on the use of electricity by mining firms. This provision will come in handy and will give miners assurance that the law protects them from unwarranted power cuts. In January this year, the state-owned electricity company Chernomorenergo disconnected 15 mining facilities from the national grid. At the time, the company claimed that its goal was to overcome power shortages during the winter.

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.