Kazakh ministry halts illegal crypto mining operations

The Kazakh Ministry of Energy has announced that 13 cryptocurrency mining operations have been shut down. As part of efforts to regulate Bitcoin (BTC), the government shut down the mining operations. This sector has become increasingly popular in recent decades.

According to the official statement, miners used a lot of energy with a total power consumption in excess of 202 megawatts. The Kazakhstan government stated that efforts will continue to disconnect the mining farms from electrical networks. After the detection of illegal mining operations, authorized agencies will launch operational and investigative actions.

After China’s crackdown on crypto, Kazakhstan is the second-largest Bitcoin producer in the world. This has led to a dramatic increase in power consumption. Cointelegraph reported that Kazakhstan had 18% of the global Bitcoin hash rate, trailing only the United States. The figure was only 8% in April, just before China’s crackdowns on mining.

The creation of a tax category to tax Bitcoin mining was approved by the president of Kazakhstan in June 2021. This may have been motivated by China’s anti Bitcoin attitude. Due to hostility from China, 2021 saw the relocation of Chinese BTC mining companies like Canaan or BTC.com to Kazakhstan.

According to Cointelegraph, the mining industry is a highly concentrated sector that has existed in Kazakhstan for a long time. However, the sector executives believe it will lose its share of the hash rate market due to a variety of reasons. In the next month’s index update, Kazakhstan is expected to be one of the three top BTC mining nations.

Related: Results of the CBDC pilot project are reported by Kazakhstan’s central banking

The Kazakh president ordered a cabinet level investigation into cryptocurrency mining. Marat Sultangaziyev, Kazakhstan’s First Vice Minister for Finance, proposed power price increases for crypto miners. According to reports, President Tokayev doesn’t oppose mining, but miners must get licenses and pay electricity bills at reasonable terms. He also has to pay taxes.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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