Influx of crypto miners to Kazakhstan reportedly strains energy supply

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Now answerable for the second greatest contribution to the Bitcoin hashrate, Kazakhstan’s power grid could also be unprepared to deal with the addition of many cryptocurrency miners from China and others trying to capitalize on low value electrical energy.

In a Nov. 10 report from Reuters, authorities officers in Kazakhstan estimate that unregistered crypto miners within the nation may very well be consuming twice as a lot energy as these registered to keep away from paying taxes and different charges. Collectively, all crypto miners within the nation may very well be utilizing as a lot as 1.2 gigawatts, or roughly 8% of Kazakhstan’s complete energy technology capability.

In keeping with Murat Zhurebekov, Kazakhstan’s vice minister of power, addressing the potential pressure on the nation’s energy grid “can’t be delayed any longer.” He mentioned officers deliberate to subject a directive which might restrict the facility consumption of unregistered miners, however didn’t specify how precisely they may very well be situated.

Associated: Kazakhstan Senate approves legislation regulating crypto service providers

With the exodus of crypto miners following a government crackdown in China, each Kazakhstan and the US at the moment stand as nations answerable for the biggest contributions to the Bitcoin (BTC) hashing energy. Main mining pools including BTC.com and companies like Canaan have arrange store throughout the border.

In June, President Kassym-Jomart Tokayev signed legislation imposing additional taxes on the power utilized by crypto miners legally working in Kazakhstan. The regulation would reportedly introduce an extra $0.00233 charge per kilowatt-hour, scheduled to take impact beginning in January 2022.

In keeping with information from the Cambridge Centre for Various Finance, Kazakhstan generated greater than 18% of the common month-to-month hashrate share for the BTC community as of July, with the U.S. contributing greater than 35%. Cointelegraph reported in October that some estimates put cryptocurrency mining revenue in Kazakhstan at $1.5 billion over the following 5 years.