Kazakhstan strengthens its noose on cryptocurrency miners with power consumption report requirements

Kazakhstan strengthens its noose on cryptocurrency miners with power consumption report requirements ...

Kazakhstan, which has been affected by electricity shortages owing to crypto mining, is taking new steps to deal with the issue. According to Bagdat Mussin, Kazakhstan''s government has mandated crypto miners to submit detailed reports which demonstrate their power consumption requirements. This order is mailed to any mining business that wants to begin operations in the Asian country thirty days before starting the work.

Before starting operations, the Kazakhstan government has instructed all crypto miners to provide technical specifications for their power requirements. This includes details on the type of mining equipment used, the customs cargo statements for the equipment, and any investments planned within the year.

The purpose of the rule is to keep the nation''s electricity supply accessible to common citizens and other industries. Since crypto mining is done on advanced computers, it narrows up loads of electricity, causing havoc in neighbouring areas.

Malik Olzhabekov, Kazakhstan''s digital development ministry, has been assigned the authority to enforce this rule by crypto miners.

Kazakhstan''s grip on crypto mining is being boosted as a result of power outages.

Kazakhstan''s President, Kassym-Jomart Tokayev, told authorities to increase the tax on electricity for crypto-mining companies in February this year.

  • Pakistan Forms Committees to Decide Fate of Crypto in the Country

Crypto miners will also be required to pay import charges for their equipment.

Kazakhstan became the world''s second largest Bitcoin mining facility after the United States, according to the Cambridge Centre for Alternative Finance, following China''s largest crackdown on cryptocurrency mining activity last September.

By March this year, all crypto mining companies had been required to disclose themselves with their records and other documents in Kazakhstan.

The Republic of Kazakhstan''s Energy Ministry is identifying, raiding, and busting illegal mining farms where cryptocurrency is being generated illegally.

In March, the Kazakhstan financial monitoring agency issued 25 criminal cases and confiscated more than 67,000 pieces of crypto mining equipment worth about KZT 100 billion (roughly Rs. 1,478 crore) from illegal institutions.