A crackdown on illegal cryptocurrency mining has seen over 100 illegal operations shut down in Kazakhstan. The country’s electricity grid is being threatened by this form of “free” energy and authorities are now trying to tackle the issue.
The “bitcoin mining setup” is a cryptocurrency that is mined through the use of computers. The “More Than 100 Illegal Mining Farms Shut In Kazakhstan.”
Kazakhstan’s financial regulator, the Financial Monitoring Agency, insists on regulating the young business. In that regard, the watchdog announced on March 15 that authorities had ordered up to 55 illicit mining farms to “voluntarily cease operations” after an enforcement campaign, while another 51 businesses had their activities terminated.
The unlawful mining activities that are suspected of compromising the country’s electricity network were the focus of this enforcement operation. In its statement, the agency emphasized the need for a clear regulatory approach to crypto mining.
According to the official statement, all of the targeted operators halted their mining operations and destroyed the rigs while simultaneously removing them from their deployment sites. Several high-profile corporate people reportedly related to the illegal operations were also highlighted in the same press release.
A former chief of the national police’s narcotics crime section, an ex-chairman of the state-owned Qazaqgaz gas business, and the country’s 17th wealthiest people were among those named.
Because they had not taken the effort to alert the authorities about their activities, all of these actions were thought to be unlawful. Furthermore, they had managed to connect to the grid illegally or dodged tax and customs payments. A percentage of the energy utilized by the unlawful operators should have been provided to the country’s industrial production operations.
In addition, the agency confiscated approximately 67,000 pieces of equipment worth $190 million and filed 25 criminal charges. The daily energy usage in the country is said to have decreased by 600 MWh after the enforcement raid.
Kazakhstan has been stepping up its attempts to reduce the burden that illicit cryptocurrency mining has been exerting on its infrastructure, so this enforcement move was anticipated. The country hosted almost 18% of the global BTC hash rate in August of last year. The national Ministry of Energy, on the other hand, announced in February 2022 that it will find and disconnect non-compliant mining farms from the grid.
That is not to mean that the government intends to clamp down on crypto mining in its entirety. The government seems to be working on a realistic regulation framework that will allow it to take advantage of the new possibilities that bitcoin brings.
According to the Financial Monitoring Agency’s news release:
“In light of these developments, the interdepartmental task group is developing methodical choices to address the concerns.”
