Kazakhstan Cracks Down on Crypto Mining Space, Suspends 13 Unauthorized Mining Farms

Updated:

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.

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.