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Unrecognized Abkhazia considers new cryptocurrency regulation

Redwan Eid | Jun. 26, 2019
Unrecognized Abkhazia considers new cryptocurrency regulation

June 26, 2019 | AtoZ Markets - In the Republic of Abkhazia, a new cryptocurrency regulation bill is being considered at the moment, as per local media resources reported recently.

The Ministry of Economy had approved the bill and sent it to the Cabinet of Ministers of the republic for discussion.

The provisions of the cryptocurrency regulation bill define the legal, economic, organizational, and technical rules for the implementation of cryptocurrency mining activities in the republic.

Among the conditions one must meet to be allowed to mine cryptocurrency in the Republic of Abkhazia, are that they must register as a legal entity and an entrepreneur, in addition to registering with the revenue authorities as a taxpayer and obtain a license for mining cryptocurrency.

The cryptocurrency regulation bill comes after a ban

The regulation set will leave a margin for introducing temporary restrictions on the use of the republic’s power system for cryptocurrency mining in the case of having energy crises, such as infrastructure limitations or power shortages.

It is worth mentioning that in December 2018, the government of Abkhazia had banned the activities of cryptocurrency mining on the country's electric power system.

Media resources had mentioned at the beginning of this year, that the Abkhazian government cut power to 15 facilities with a total capacity of 8,950 kilowatt-hours (kWh), as part of a series of “temporary measures to limit the consumption of electricity by certain categories of subscribers."

The number mentioned above was purportedly equivalent to the electricity consumption of 1,800 households.

On his turn, Anatoly Aksakov, the chairperson of the Russian State Duma Committee on the Financial Market, said last June that the government might introduce “administrative responsibility” for digital currency mining by the end of the month.

It is worth noting that 7Marketz Inc., along with AtoZMarkets.com, see Abkhazia as an integral part of the Republic of Georgia and condemn any political aggression that took place in the area. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.