The Ministry of Vitality 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 control the Bitcoin (BTC) mining sector, which has grown more and more fashionable in recent times.
As per the official statement, the miners have been utilizing lots of power, with a complete energy consumption of 202 megawatts. In accordance with 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 residence to over 18% of the world’s Bitcoin hash charge as of August 2021, trailing solely the USA. 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 angle. In 2021, resulting from Chinese language authorities’ hostility, Chinese language BTC mining companies equivalent to Canaan and BTC.com relocated to Kazakhstan.
Though the mining business has been largely concentrated within the nation for a while, it appears set to lose its hash charge share resulting from numerous causes, in response to a number of sector executives as reported by Cointelegraph. This could almost definitely trigger Kazakhstan to depart from the highest three BTC mining international locations within the index replace, anticipated subsequent month.
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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 worth hikes for crypto miners. In accordance with stories, though President Kassym-Jomart Tokayev is just not in opposition to mining, miners should acquire licenses, pay electrical energy payments on first rate phrases, and pay taxes.
