The Ministry of Energy in Kazakhstan has reportedly shut down 13 unauthorized mining farms across the country, as the Kazakh government doubled down on its efforts to regulate the crypto mining space in the country.
Currently, Kazakhstan claims the number two spot when it comes to its contribution to the global Bitcoin hashrate with 18.1%. The US holds the number one spot with 35.4%, while Russia comes in third place with 11.2%.
Recently, Kazakhstan’s Nuclear and Energy Supervision along with the Ministry of Energy and other state bodies, came together to perform a joint investigation on the digital currency mining sector and develop regulatory objectives. After only five days of this exercise, mobile teams have discovered and suspended 13 illegal mining farms. According to the official statement by the Energy Ministry, these farms have consumed a total of 202 megawatts. The statement detailed:
“The facilities of digital mining have been found all over the country, which starts with the Karaganda region, Pavlodar, Turkestan, Akmola, Kostanay, Nur-Sultan, Almaty, and Shymkent.
Self-restrictions were also introduced in the West Kazakhstan region digital mining with a total capacity of 91 MW, in the Karaganda region – 44 MW.”
Kazakhstan Government to Release Crypto Mining Regulation Document in April
Regardless, the Kazakh government has assured that investigative measures to locate and disconnect illegal mining farms from the national grid would continue.
Reports show that electricity demand in the central Asian nation spiked dramatically in 2021 after the nation became a target environment for crypto miners following the mass migration of miners from China amid a crackdown.
Interestingly, in June 2022, President of Kazakhstan Kassym-Jomart Tokayev legitimized Bitcoin mining in the nation after approving a tax band for crypto mining operations. Also, reports show that the Kazakh government could glide below and pass a “full-fledged” bill to regulate crypto mining in the nation by April 1, 2021.
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