Per the statement, government initiatives to detect and shut down mining farms from power networks will persist.
The Kazakh Ministry of Energy reported that 13 cryptocurrency mining activities have been uncovered and shut down. The closure was carried out by the government as a forefront of measures to control Bitcoin (BTC) mining operations, which has gained traction for years now.
The miners were consuming a lot of electricity, according to the official statement, as there is a total of 202 megawatts of power consumed by mining alone. Efforts to detect and deactivate mining operations from power networks will resume, per the Kazakhstan government. Authorities will conduct operational and investigative actions when illegal mining operations are discovered.
Kazakhstan gained the status of the second country in the world after the United States that generates Bitcoin (BTC), after China’s crackdown on crypto miners forced them to relocate to other mining-friendly countries. In August 2021, Kazakhstan accounted for 18% of the global hash rate of Bitcoin (BTC), while prior to China’s mining crackdown, the Bitcoin (BTC) mining participation of the country was only 8% in April.
The president of Kazakhstan authorized the initiation of tax legislation for Bitcoin (BTC) mining in June of last year, possibly in response to China’s stance on Bitcoin (BTC). Due to the antagonism of Chinese authorities, Chinese Bitcoin (BTC) mining companies such as Canaan and BTC.com moved to Kazakhstan last year.
Despite the fact that the mining industry has been mostly centered in Kazakhstan for quite a while, it appears to be on the verge of losing its hash rate share, per the statements of multiple industry experts. Kazakhstan could fall out of the leading Bitcoin (BTC) mining countries, the update of which is to be made public in March.
In early February, a cabinet-level inquiry was launched by the President of Kazakhstan in addition to the proposal of increasing power prices for cryptocurrency miners as proposed by Kazakhstan’s First Vice Minister of Finance Marat Sultangaziyev. Despite the fact that President Tokayev is not advocating against mining, reportedly miners are required to get permits, pay reasonable electrical costs, and pay taxes on mining operations.