Georgian authorities beginning crackdown on illegal cryptocurrency mining

TBILISI. June 1 (Interfax) - The Georgian government has begun cracking down on illegal cryptocurrency mining, which leads to excessive electricity consumption, State Minister for Coordination of Law Enforcement Agencies Mamuka Mdinaradze said.

"One of the main challenges in this area is the situation in the mountainous region of Svaneti, where electricity is provided free of charge to the population. Excessive electricity consumption in this region harms both the local population and the state," Mdinaradze said on Monday at a briefing.

Mdinaradze cited data showing that electricity consumption in Svaneti exceeds that of other regions with similar populations by tenfold.

"The state loses at least 20-25 million lari ($9.5 million) annually from illegal cryptocurrency mining, which places an additional burden on all citizens," Mdinaradze noted.

Mdinaradze said that the government intends to begin installing electricity meters in Svaneti to address the problem.

"Electricity will continue to be free for the population, but up to a certain limit. Law enforcement agencies will monitor and identify cases of large-scale illegal electricity consumption," Mdinaradze stated.