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Kazakhstan president signs law to cap power consumption of crypto-mining

Arkansas approves 'right to mine' Bitcoin bill to protect crypto miners

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TL;DR

  • President Kassym-Jomart Tokayev of Kazakhstan announced that he had signed legislation to reduce energy consumption by domestic crypto miners.
  • The new law calls for government-approved mining tools.

Kazakhstan president Kassym-Jomart Tokayev announced that he had signed legislation to reduce energy consumption by domestic crypto miners. This announcement was published on his website.

As cryptocurrency miners, both legal and illegal, have recently flocked to Central Asian territories in their thousands, the local infrastructure is under increasing pressure. As a result of this unsustainable influx and the associated demand for electricity, the nation has been forced to introduce stricter regulations regarding mining operations. Nevertheless, it remains committed to developing its larger digital ecosystem further.

The recently-passed law now limits how much electricity miners can draw from the national grid only when energy is abundant. The surplus will be allocated amongst certified operators who can take part in bidding for this power supply. However, those mining operations that utilize renewable sources or their independent generators not connected to the electrical grid are exempted from the legislation.

The newly-enacted legislation will ensure that miners acquire authorization from the relevant authorities before commencing operations. Along with some adjustments to the tax system for the sector, it also regulates mining pools so only those listed by the government can be used and orders miners to sell half of their cryptocurrency output to crypto exchanges located in Kazakhstan’s Astana International Finance Center (AIFC) by 2024, increasing this amount up to 75% a year later. Additionally, Kazakhstan is taking steps toward regulating digital asset exchanges following the FTX incident.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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