Government announces crackdown on illegal cryptocurrency mining in Mestia

The Georgian government has announced new measures aimed at tackling illegal business activities in the energy sector, with a particular focus on unauthorised cryptocurrency mining in the municipality of Mestia.

Speaking at a government briefing, Vice Prime Minister and State Minister for Coordination of Law Enforcement Agencies Mamuka Mdinaradze said illegal mining operations had become a major challenge for the country's energy system.

Mdinaradze claimed excessive electricity consumption linked to cryptocurrency mining has placed significant strain on the local power network in Mestia, leading to overloaded transmission lines, disruptions to electricity supply and increased pressure on infrastructure.

He said electricity consumption in Mestia reached 133 million kilowatt-hours in 2025, compared with around 10 million kilowatt-hours in municipalities of a similar size. Mdinaradze argued that the resulting financial burden on the energy system amounts to between 20 million and 25 million lari and ultimately affects electricity consumers across the country.

The government also announced plans to begin the installation of electricity meters in Mestia, a process that officials said had previously faced obstacles.

Mdinaradze stressed that the purpose of metering is to identify and prevent illegal and unregistered electricity consumption. He said electricity would remain free of charge for residents of Svaneti within a designated consumption threshold, while usage above that limit would be subject to tariffs.

In addition to household metering, officials plan to monitor electricity consumption at village and settlement level in order to identify areas where excessive usage is occurring.

Mdinaradze said law enforcement agencies had been instructed to assist with the implementation of the programme, investigate large-scale illegal electricity consumption and take legal action where necessary.

He warned that any attempts to obstruct the process or violate the law would result in a legal response.