Kazakh ministry halts illegal crypto mining operations

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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 manage the Bitcoin (BTC) mining sector, which has grown more and more widespread in recent times.

As per the official statement, the miners had been utilizing numerous vitality, with a complete energy consumption of 202 megawatts. Based on the Kazakh authorities, efforts to determine and disconnect mining farms from {the electrical} networks will proceed. Following the invention of illicit mining operations, licensed 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 america. In April, earlier than China’s mining crackdowns, the determine was simply 8%.

In June 2021, the president of Kazakhstan accepted the creation of a tax class for Bitcoin mining, which was maybe motivated by China’s anti-Bitcoin angle. In 2021, attributable to 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 seems set to lose its hash charge share attributable to varied causes, in line with a number of sector executives as reported by Cointelegraph. This could most certainly trigger Kazakhstan to depart from the highest three BTC mining nations within the index replace, anticipated subsequent month.

Associated: Kazakhstan’s central financial institution experiences outcomes on CBDC pilot mission

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. Based on experiences, though President Kassym-Jomart Tokayev is just not towards mining, miners should acquire licenses, pay electrical energy payments on respectable phrases, and pay taxes.

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