Kazakhstani authorities shut down 202MW of illegal cryptocurrency mines.
Kazakhstani authorities shut down 13 illicit crypto mines, the most of which were bitcoin-related, with a combined electrical capacity of 202 megawatts, and promised to continue cracking down on the industry.
- Kazakhstan has been attempting to track down improperly permitted mines in order to lessen the burden on the national grid as a result of chronic electricity shortages in recent months. Starting in September, legally operational mines were subjected to power rationing, with national grid operator Kazakhstan Electricity Grid Operating Co. (KEGOC) eventually cutting off their power in January.
- Inspections were undertaken in the last five days by employees of the Committee for Nuclear and Energy Supervision and the Ministry of Energy, as well as police and other state body officials, according to a statement released by the energy ministry on Monday.
- In November, Energy Minister Magzum Myrzagaliev stated that illegal mines consume approximately 340MW of electricity, compared to 600MW used by regulated businesses. Miners began flocking to Kazakhstan in May, as Chinese officials launched a crackdown on the mining industry. According to the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan accounted for 18 percent of computing power on the Bitcoin network in August, second only to the United States.
- 31.3MW in Karaganda, 22MW in Pavlodar, 3.28MW in Turkistan, 1.03MW in Akmola, and 1.03MW in the Kostanay region were among the largest busts in last week's operation. According to the statement, the government's efforts to locate unlawful mines would continue.
- Aside from the outright shutdowns, Kazakhstan President Kassym-Jomart Tokayev proposed a fivefold increase in crypto mining taxes on February 8. As miners large and small look to shift operations overseas, BitFuFu and BIT Mining are among the significant companies.