Kazakhstan Is Cracking Down on Illegal Crypto Miners, 13 Crypto Farms Disconnected

Kazakhstan is cracking down on illegal crypto miners. The energy authority reported it has traced and disconnected 13 crypto mining farms in the country. These crypto miners operated without proper authorization.

The consumption power of these crypto miners amassed to 202 megawatts.

The Kazakhstan President, Kassym-Jomart Tokayev instructed the Financial Monitoring Agency to identify all crypto miners in the country and report back by 15 Match.

He added that the crypto mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term industry in the country is neither creating 'mass jobs' nor products. Bitcoin miners receive tariffs that are much lower than the rest of the population. Tax is not paid on imported equipment.

Additionally, the President asked for a tax increase on crypto mining. The current tariff of 1 Kazakhstani Tenge (that is currently worth $.0023) per kilowatt is expected to increase. Local reports suggest the price per kilowatt may increase to 5 tenge, which is $0.012.

Measures to regulate the crypto mining are expected to be introduced by 1 April 2022.

Crypto Mining Companies Are Relocating

More than 6 companies are already planning to leave Kazakhstan due to power outages. BitFuFu, which moved 80,000 mining machinery from China to Kazakhstan in 2021, is relocating to the United States.

"To ensure the safety and sustainable operation of your server, BitFuFu had decided to relocate all cloud hosting servers from Kazakhstan to North America after careful studies in Dec. Now your cloud hosting servers have restarted mining in North America mining farms today."

Bagdat Musin, Kazakhstan’s Minister of Digital Development said that unauthorized miners consume over 1 gigawatt.

Bitcoin miners are considering relocating to the United States or Russia. Despite Russia's central bank view to ban cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term the Government is on its way forward to regulate both cryptocurrencies and crypto mining.

The current tension between Russia and Ukraine may escalate quickly. In an event of direct sanctions on Russia, crypto miners may find themselves looking for a new home.