The Ministry of Energy of the Republic of Kazakhstan announced the discovery and cancellation of 13 mining operations for cryptocurrency. The government has implemented the closure as part of its efforts to regulate the bitcoin (BTC) mining sector, which has become increasingly popular in recent years.

According to the official statement, the miners used a large amount of energy with a total energy consumption of 202 megawatts. According to the government of Kazakhstan, efforts will continue to identify and separate mining farms from electrical networks. After detecting illegal mining, the authorized bodies will conduct operational searches.

As the second largest producer of bitcoins on the planet after China’s breakdown of cryptocurrencies, Kazakhstan’s energy consumption has skyrocketed. According to the Cointelegraph, from August 2021, Kazakhstan hosted over 18% of the global bitcoin hash rate, second only to the United States. In April, before the Chinese mining campaign, this figure was only 8%.

In June 2021, the President of Kazakhstan approved the creation of a tax framework for bitcoin mining, which may have been motivated by China’s anti-bitcoin stance. In 2021, due to hostility from the Chinese authorities, Chinese BTC miners such as Canaan and BTC.com moved to Kazakhstan.

Although the mining industry has been highly concentrated in the country for some time, it appears that it will lose its share of the hash rate for various reasons, according to several sector leaders, as reported by Cointelegraph. This is likely to lead to Kazakhstan falling out of the top three Bitcoin mining countries in an index update expected next month.

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On February 8, the President of Kazakhstan ordered a cabinet-level investigation into cryptocurrency mining, and Kazakhstan’s First Deputy Finance Minister, Marat Sultan Gaziev, proposed raising energy prices for cryptocurrency miners. According to reports, while President Kassym-Jomart Tokayev is not opposed to mining, miners must obtain licenses, pay electricity bills on decent terms and pay taxes.

Source: CoinTelegraph

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