Kazakh ministry halts illegal crypto mining operations

The Ministry of Power of the Republic of Kazakhstan introduced that it had found and terminated 13 cryptocurrency mining operations. The federal government executed the shutdown as a part of its efforts to manage the Bitcoin (BTC) mining sector, which has grown more and more well-liked in recent times.

As per the official statement, the miners have been utilizing quite a lot of vitality, with a complete energy consumption of 202 megawatts. Based on the Kazakh authorities, efforts to establish and disconnect mining farms from {the electrical} networks will proceed. Following the invention of illicit mining operations, approved our bodies will take operational and investigatory actions.

Because the planet’s second-largest Bitcoin producer after China’s crypto crackdown, energy consumption in Kazakhstan has skyrocketed. As reported by Cointelegraph, Kazakhstan was dwelling to over 18% of the world’s Bitcoin hash price as of August 2021, trailing solely america. In April, earlier than China’s mining crackdowns, the determine was simply 8%.

In June 2021, the president of Kazakhstan authorised the creation of a tax class for Bitcoin mining, which was maybe motivated by China’s anti-Bitcoin perspective. In 2021, as a consequence of Chinese language authorities’ hostility, Chinese language BTC mining companies equivalent to Canaan and relocated to Kazakhstan.

Though the mining business has been largely concentrated within the nation for a while, it appears set to lose its hash price share as a consequence of numerous causes, based on a number of sector executives as reported by Cointelegraph. This is able to probably trigger Kazakhstan to depart from the highest three BTC mining international locations within the index replace, anticipated subsequent month.

Associated: Kazakhstan’s central financial institution stories outcomes on CBDC pilot undertaking

On Feb. 8, the Kazakh president ordered a cabinet-level investigation of cryptocurrency mining, with Kazakh First Vice Minister of Finance Marat Sultangaziyev proposing energy value hikes for crypto miners. Based on stories, though President Kassym-Jomart Tokayev isn’t towards mining, miners should acquire licenses, pay electrical energy payments on first rate phrases, and pay taxes.

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