Georgia launches crackdown on unlawful crypto mining
Officials say excessive electricity use from illegal mining operations has contributed to outages affecting residents, businesses and tourism.
The Georgian government has announced new measures to combat illegal cryptocurrency mining in Mestia, citing concerns over pressure on the country’s electricity network.
Vice Prime Minister Mamuka Mdinaradze said unauthorised mining activity in the municipality has placed sustained pressure on local power supplies, worsened supply quality, overloaded the grid and transmission lines, and contributed to outages affecting residents, businesses, and tourism.
According to Mdinaradze, electricity consumption in Mestia reached 133 million kilowatt-hours in 2025, while a municipality of comparable size would normally not exceed 10 million kilowatt-hours. Authorities estimate the resulting damage to the electricity system and financial losses at at least 20 to 25 million lari.
To address the issue, the government will begin installing electricity meters in Mestia. Officials said the purpose of the process is to identify illegal and hidden electricity consumption while preserving free electricity access for ordinary users up to a maximum quantity required for their needs.
Consumption above that limit will be subject to a tariff. Metering will be carried out locally and across villages and settlements to help identify the sources of excessive electricity use.
Law enforcement agencies have been tasked with supporting and overseeing the rollout. Officials said large-scale illegal electricity consumption will be investigated and prosecuted, and warned that attempts to obstruct the process or continue unlawful activity will face legal consequences.
Why does it matter?
The case shows how cryptocurrency mining can become an energy governance issue when high electricity consumption strains local infrastructure. Georgia’s response focuses less on crypto regulation itself and more on identifying unlawful electricity use, protecting grid stability, and balancing subsidised or free household electricity with enforcement against commercial-scale mining activity.
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