Kazakhstan Shuts Down Over 100 Crypto Mining Farms

More than 100 crypto farms in Kazakhstan have terminated operations because of ongoing inspections of the mining sector. Authorities have revealed that a few of the services are linked to distinguished businessmen and former authorities officers.

Financial Watchdog Goes After Crypto Miners Across Kazakhstan

The speedy enlargement of crypto mining in Kazakhstan, since final yr’s crackdown on the trade in China, has been blamed for persisting issues with electrical energy shortages and blackouts. The authorities has gone as far as to say that unlawful gamers within the sector are threatening the nation’s financial safety.

Following inspections ordered by President Kassym-Jomart Tokayev, 55 mining farms have “voluntarily” closed down, Kazakhstan’s Financial Monitoring Agency announced Tuesday. They have fully suspended actions, dismantled and eliminated their gear from numerous areas.

In February, Tokayev tasked the watchdog with figuring out all enterprises minting digital currencies and verifying their tax, customs, and technical documentation. The company was anticipated to conduct the checks along with different authorities our bodies and report again by mid-March.

Some of the mining corporations which have ceased operations are affiliated with well-known entrepreneurs in Kazakhstan like Alexander Klebanov from Pavlodar area and Bolat Nazarbayev, brother of former president Nursultan Nazarbayev, who dominated the nation for many years after the dissolution of the Soviet Union.

According to media experiences, Bolat Nazarbayev has been concerned in cryptocurrency mining in Northern Kazakhstan. President Tokayev’s administration has been focusing on enterprise pursuits of the Nazarbayev household after quelling political unrest in January which affected miners as nicely.

Other public figures with alleged investments in cryptocurrency mining embody the previous chairman of the board of the Qazaqgaz power firm, Kairat Sharipbaev, and Erlan Nigmatulin, a distinguished businessman from Karaganda area.

Inspectors Close Down More Than 50 Illegal Mining Farms

Government inspectors have additionally shut down 51 unlawful crypto farms, the homeowners of which hadn’t notified authorities of beginning actions or had related their {hardware} to the facility grid with out permission. Some of those services had been situated in particular financial zones, evading tax and customs duties.

Among the mining corporations engaged in unlawful actions are entities linked to considered one of Kazakhstan’s richest individuals, Kairat Itemgenov. Other companies working underground mining farms have been related to Tlegen Matkenov, former head of division on the Ministry of Internal Affairs.

The Financial Monitoring Agency has filed 25 prison instances and seized 67,000 items of mining gear. The regulator claims the newest crackdown has helped to cut back power consumption within the nation by 600 MWh.

The lack of adequate regulation of mining and cryptocurrencies, the company warned, creates dangers for the nation’s monetary system and its residents. Its representatives are collaborating in a working group tasked to develop new laws for the crypto trade along with specialists from the ministries of digital growth, power, and finance.

Kazakhstan turned a crypto mining hotspot in 2021, however issues with power provide have since forced some mining corporations to relocate to different international locations such because the U.S. The National Association of Blockchain and Data Center Industry of Kazakhstan lately revealed that licensed miners have already moved a 3rd of their gear in a foreign country.

Do you count on Kazakhstan to proceed to clamp down on cryptocurrency mining? Share your ideas on the topic within the feedback part beneath.