Georgia launches crackdown on illegal crypto mining in Mestia

The Georgian government plans to install electricity meters in villages and settlements in the Mestia region. This measure is being implemented to curb illegal crypto mining activities that are straining the region's energy system. This was reported by Cointelegraph.com reports.

Deputy Prime Minister Mamuka Mdinaradze stated on Monday that due to illegal mining, Mestia's electricity consumption reached 133 million kilowatt-hours in 2025. This figure is 13 times higher than in similar municipalities. Large-scale illegal operations have led to deteriorating energy supplies and grid overload, causing frequent outages for residents and tourists.

According to Mdinaradze, illegal Bitcoin mining in the Mestia municipality causes approximately 20–25 million GEL (9.4 million USD) in financial losses annually. Law enforcement agencies have been tasked with identifying illegal mining farms. Meters will be installed at the village and settlement level to pinpoint sources of illegal consumption.

It should be noted that electricity in the Svaneti region will remain free for residents up to a set limit. The new regulations are aimed solely at stopping illegal commercial mining activities. Georgia offers cheap electricity due to its hydropower resources in the Caucasus Mountains, making it an attractive destination for Bitcoin miners.

The country previously offered low electricity tariffs and a favorable tax regime for crypto mining, including free industrial zones and VAT exemptions. However, uncontrolled consumption now poses a serious threat to the national economy and energy security.