February 27, 2024

Kazakh President Demands to "Regulate Mining" in the Country

The President of Kazakhstan demands to “regulate mining” in the country

President of Kazakhstan Kassym-Jomart Tokayev instructed the Ministry of Finance to “urgently” address the issueregulation of miners' activities in the republic.

During a meeting with the Minister of Energy, the President noted the need for urgent regulatory and legal regulation of energy-intensive businesses in order to avoid a shortage of electricity.

Tokayev noted that the officially registeredcompanies will be able to continue to mine cryptocurrency without obstacles. However, cheap electricity has attracted many "gray" miners and, according to the ministry, they already consume about 1200 MW. Uncontrolled consumption can lead to a lack of resources in the domestic energy market. In this situation, the President ordered to tighten control over energy consumption and speed up the identification of gray miners.

Mass migration of miners made Kazakhstanone of the new Bitcoin mining centers, which accounts for approximately 18% of the global hashrate. However, along with the prosperity of the industry in the country, issues of increasing electricity consumption have arisen. 

The Ministry has already made a proposal to createthe official register of mining farms and the restrictive norms of electricity consumption by such companies. From January 1 next year, the country will levy a digital mining tax on the amount of energy consumed in the process of mining digital currency.

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