Georgia steps up crackdown on illegal cryptocurrency mining
Georgian authorities say they are launching a campaign against illegal cryptocurrency mining in the region of Svaneti. As part of the effort, officials will introduce new mechanisms to monitor electricity consumption in the municipality of Mestia.
At a briefing, Mamuka Mdinaradze, the State Minister for Coordination of Law Enforcement Agencies, said the government aims to reduce pressure on the energy sector and curb the illegal use of electricity. According to him, authorities will pay particular attention to cryptocurrency mining activities in Mestia, which they regard as one of the main challenges facing the region’s power system.
According to Mdinaradze, authorities will begin installing electricity meters across the municipality. He said various forms of resistance had prevented such a process for many years. The government says the measure aims to identify and eliminate illegal electricity consumption.
Mdinaradze said residents of Svaneti will continue to receive electricity free of charge within established consumption limits. However, authorities will introduce a maximum threshold, and consumers who exceed it will have to pay according to the relevant tariff.
He added that electricity consumption in Mestia reached 133 million kilowatt-hours in 2025, far exceeding the figures recorded in other municipalities. According to government estimates, this trend causes annual losses of at least 20–25 million lari (around $7–9 million) to the energy system and its financial sustainability. Authorities argue that consumers across the country ultimately bear the cost.
Officials plan to install meters both at the individual household level and across villages and settlements. The government says this approach will allow it to identify sources of excessive electricity consumption more accurately.
Mdinaradze also said law enforcement agencies have received instructions to support and oversee the process and to identify cases involving particularly large-scale electricity use. He warned that authorities would respond firmly under the law if anyone obstructs the installation of meters or violates legal requirements.
Electricity consumption linked to cryptocurrency mining and the resulting strain on the power grid in Svaneti has remained a contentious issue for both local and central authorities for many years. The government says the new measures will help reduce pressure on the energy system and curb illegal electricity consumption.
Crackdown on cryptocurrency mining in Georgia
