Technology

Kazakhstan tightens the noose on crypto miners with power consumption reporting requirements


Kazakhstan, which has been hit by power shortages due to cryptocurrency mining, is putting in place new measures to deal with the problem. The government of Kazakhstan has mandated crypto miners to submit detailed reports justifying their energy consumption needs. Any mining company that wants to start operations in the Asian nation will have to submit this report thirty days before the start of work. The order was issued by Bagdat Mussin, Minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan.

The government of Kazakhstan has ordered all crypto miners to provide “technical specifications” for their power requirements before commencing operations. This includes details of the type of mining equipment used, customs cargo declarations for that equipment and any investment planned for the year, according to an official statement.

The rule aims to keep the country’s electricity supply available for ordinary citizens and other industries. Since crypto mining is done on advanced computers, it gobbles up a lot of electricity, disrupting the supply to nearby areas.

Malik Olzhabekov, Deputy Minister of Kazakhstan’s Ministry of Digital Development, has been tasked with ensuring that this rule is adhered to by crypto miners.

Plagued by power outages, Kazakhstan has tightened its grip on crypto-mining firms.

In February this year, the President of Kazakhstan, Kassym-Jomart Tokayev, asked the authorities to increase the electricity tax for crypto-mining companies.

Crypto miners will also have to pay import fees for their equipment.

Last year, Kazakhstan became the world’s second-largest Bitcoin mining hub after the United States, according to the Cambridge Center for Alternative Finance, after the major Chinese hub clamped down on cryptocurrency mining activity. last September.

All crypto-mining farms had been asked to disclose themselves with their records and other documents in Kazakhstan by March this year.

The Ministry of Energy of the Republic of Kazakhstan, along with other law enforcement authorities, identify, loot and dismantle illegal mining farms where cryptocurrencies are illegally generated.

In March, the Financial Supervisory Agency of Kazakhstan registered 25 criminal cases and confiscated more than 67,000 pieces of crypto-mining equipment worth about 100 billion KZT (about 1,478 crore rupees) from illegal establishments.

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remon

Passionate troublemaker. Amateur gamer. Lifelong alcohol specialist. Social media nerd. Thinker
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