Fun

Kazakhstan President Demands ‘Urgent’ Regulation of Crypto Mining Amid Power Shortages

News Feed - 2021-11-04 09:11:48

Kazakhstan President Demands ‘Urgent’ Regulation of Crypto Mining Amid Power Shortages


Facing an electricity deficit largely blamed on cryptocurrency miners, Kazakhstan is trying to avoid an energy crisis this winter. The president of the country has insisted on the need to maintain power supply for the industry and population, calling for urgent legal regulation of the expanding coin minting sector. President Tokaev Calls for Legislative Regulation of Cryptocurrency Mining in Kazakhstan


During a recent meeting with the energy minister of Kazakhstan, Magzum Mirzagaliev, President Kassym-Jomart Tokayev criticized his department for allowing a sharp decline in fuel reserves. The head of state also emphasized the need to ensure an uninterrupted supply of electricity for both businesses and households, and to create additional generating capacities.


According to a press release from Tokayev’s office, Mirzagaliev informed the president about steps taken to compensate for fuel shortages and presented a forecast for the development of Kazakhstan’s power generation industry until 2035. Electricity consumption has been projected to increase annually and Kazakhstan intends to rely on renewable sources, natural gas, and hydroelectric power to deal with the rising demand.


The Central Asian nation, which maintains low electricity rates, is becoming home to a growing number of cryptocurrency miners amid an ongoing crackdown on bitcoin mining in China. Their energy-hungry data centers have been blamed for a 7-percent spike in consumption in the first nine months of the year alone, and authorities claim that a single mining farm needs as much energy as 24,000 homes to operate.


Minister Mirzagaliev also acquainted Tokayev with the measures aimed at establishing firmer control over the cryptocurrency mining sector, especially in regards to illegal coin minting operations. Official estimates suggest that these so-called “gray” miners burn as much as 1,200 megawatts of electricity. Authorities continue with their efforts to identify such facilities across the country.


The president instructed the government to step up these efforts with the help of other competent authorities, the announcement quoted by Forklog reveals. Tokayev also tasked the executive power to organize “urgent legislative regulation of mining.” At the same time, he stressed that legal, “white” miners will be allowed to continue their activities without additional restrictions. In his view, Kazakhstan has the resources to ensure an uninterrupted supply of electricity for its domestic market.


Tokayev’s comments come after a group of lawmakers proposed the establishment of a state register for cryptocurrency farms operating in the country last month. The members of the Mazhilis also suggested that miners should be charged a higher price for the electricity they use.


The capped tariff is one of Kazakhstan’s main problems, officials in neighboring Russia believe, as the artificially low price has limited investments in new infrastructure and generation capacity. Russian energy giant Inter RAO recently revealed it’s considering providing electricity supplies for Kazakhstan to help the country deal with the shortages in the winter months.


Do you expect Kazakhstan to adopt comprehensive regulations for its crypto mining industry? Tell us in the comments section below. Amid Risk of Power Deficit, Ukraine Shuts Down Another Crypto Farm MINING | 1 day ago Bitcoin Mining Operation Genesis Digital Assets Announces New Data Center in West Texas MINING | 3 days ago Tags in this story consumption, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Data Centers, deficit, Electricity, Energy, energy minister, energy ministry, Kazakhstan, Measures, Miners, mining, minister, power, President, Regulation, Regulations, shortages, steps


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Marcel Pechman3 hours agoCrypto survey finds 47% of investors expect Ether to ‘surpass’ BitcoinFidelity Digital Assets gave a bullish forecast for ETH in the next 12 months, while a separate survey from CryptoVantage
Cardano (ADA) Price Surges 32% In 4 Days: Here’s Why
Este artículo también está disponible en español. Cardano (ADA) has experienced a significant surge over the past four days, with its price increasing by an impressive 32
Solaxy Presale Ends in 27 Days, Aims for $74M+ Presale Raise – Buy While You Can
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States
Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States Bitcoin and gold holder Dan Tapiero, says it is still early to talk o
Analyst Says “The Clock Is Ticking” For XRP — Here’s Why
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
SEC’s Court Hearing on Telegram Token Delayed Till Next Year
Telegram will have to wait to make its case to the U.S. Securities and Exchange Commission (SEC) that its “gram” token is not a security. According to the latest court f
ZkSync hit with claims of ‘almost no Sybil filtering’ in slated token airdrop
Jesse Coghlan1 hour agoZkSync hit with claims of ‘almost no Sybil filtering’ in slated token airdropMudit Gupta from zkSync rival Polygon said the ZK token airdrop could be the most “farmed airdrop ever,” claimin
Crypto Firm Wyre Reportedly Shuts Down After Canceled Bolt Acquisition, CEO Claims Firm Is Just ‘Scaling Back’ Operations
Crypto Firm Wyre Reportedly Shuts Down After Canceled Bolt Acquisition, CEO Claims Firm Is Just ‘Scaling Back’ Operations According to several reports, Wyre, a cryptocurrency p
Italy Wants to Tax Crypto Gains at 26% From 2023
Italy Wants to Tax Crypto Gains at 26% From 2023 The new government of Italy plans to impose a 26% tax on capital gains from crypto trading, according to the draft budget for next
Nigeria urged to adopt crypto regulations inspired by Europe
Amaka Nwaokocha11 hours agoNigeria urged to adopt crypto regulations inspired by EuropeNigerian data and policy analyst Obinna Uzoije noted that a unified regulatory framework for all ECOWAS member states would offer pot
Technical Analysis: Cosmos Down 10%, as ANC Extends Recent Gains
Technical Analysis: Cosmos Down 10%, as ANC Extends Recent Gains Cosmos was 10% lower on Saturday, as the red wave once again submerged crypto markets. Despite this, Anchor protoco
Thailand to Develop ‘Cryptourism,’ Considers Issuing Utility Token
Thailand to Develop ‘Cryptourism,’ Considers Issuing Utility Token In search of ways to heal its travel industry, hurt by the pandemic, Thailand is now recognizing an opportuni