Recently, China has imposed a nationwide crypto mining ban which has left the cryptocurrency miners no other choice but to migrate. This change has inspired many nations to take advantage of the new opportunity. Kazakhstan is one of the central Asian countries that have opened its gates for the exiled crypto miners of China.
A considerable amount of Bitcoin miners have shifted their business from China to Kazakhstan since August. The sudden influx of new cryptocurrency miners has created an electricity shortage in the country. The Minister for Energy, Magzum Mirzagaliyev, has addressed the issue by claiming that the electricity supply allotted for crypto miners is not going to be restricted or limited.
Mirazagaliyev, the Energy Minister for Kazakhstan, has recently taken notice of the problem of electricity shortage faced by the crypto mining organizations in the region. Addressing the matter, he claimed that the government is planning to supply these miners with unrestricted electricity. He added with emphasis that the crypto mining enterprises that are planning to take advantage of this opportunity must comply with all the rules and regulations of the state.
The head of the blockchain association in Kazakhstan, Alan Dorjiyev, claimed that it is a good omen for the crypto mining organizations that that government is taking an active interest to tackle the issues faced by the miners. He further added that several illegal mining farms have recently set their camps in the region, and the government is making an effort to root these illegal miners out of the country.
Kazakhstan may Face Electricity Shortage due to Crypto Mining
Local media outlets of Kazakhstan have noted that the government has to ration the electricity supply on account of the arrival of crypto mining organizations in bulk. The government has recently decided to cut down the supply provided to retail consumers in the region and offer it to the crypto mining organization. Dorjiyev has pointed out that the government is taking a proactive approach to facilitate the cryptocurrency miners.
He further added that many crypto mining organizations have been operating in the region for years, and they comply with all the rules and laws set by the government. He further added that these legal crypto miners pay their taxes regularly and create job opportunities for the citizens of the country. Kazakhstan has become the second-highest contributor of Bitcoin hashrate, recently accounting for 18.1% of the global supply.