Kazakhstan's energy authority announced that it has disconnected 13 cryptomining facilities operating in the country without the necessary operating permit.
Kazakhstan President Kassym-Jomart Tokayev is closely involved in crypto mining activities in the country. Tokayev has instructed the Kazakhstan Financial Monitoring Agency to identify all crypto miners in the country and report on the matter by March 15.
While the cryptocurrency mining facilities operating within the country's borders were scrutinized, the President of Kazakhstan expressed his concerns about the benefit of the crypto mining industry. It is known that crypto miners use a lower tariff than households in the country and do not pay taxes on their imported equipment.
Along with the general decline in the crypto markets, the mining industry has also begun to come under increasing pressure from Kazakhstan. The country's government plans to bring up the tariff increase for crypto mining, as well as close monitoring. Local sources claim that the tariff, which is currently 1 Kazakhstani tenge per kilowatt (currently $0.0023), could be increased by up to 5 times to $0.012.
Kazakhstan cryptomining regulations expected to be completed by summer
Mining companies, which were put under pressure by the country's government, were deployed to Kazakhstan, the geographically closest and most favorable environment after being removed from China. This settlement has made Kazakhstan the largest crypto mining center after the United States. But now mining companies are making plans to leave Kazakhstan as well.
More than 5 companies, which are currently negatively affected by the current power outages, are said to intend to relocate from Kazakhstan. The new headquarters of companies leaving Kazakhstan may be in North America.
Russia is also among the countries where mining companies plan to settle. However, Russia's inability to decide yet to regulate its cryptocurrency and mining activities and the risk of sanctions due to the Ukraine crisis may make the country not an ideal location for crypto miners.