Crackdown on Illicit Crypto Mining in Place in Kazakhstan

Kazakhstan moves to crack local illicit crypto mining operations, as Kassym-Jomart Tokayev, the president of the nation, has instructed the Financial Monitoring Agency  to trace all crypto miners and communities in the nation and report by 15th March.

Currently, it was reported that 13 crypto mining operations have been discontinued after tracing them down. All 13 operations we conducting mining practices without a license; their total power consumptions amounted to 202 megawatts. It is estimated that unregulated Kazak miners have consumed over 1 gigawatt of energy, as revealed by Kazakhstan’s Minister of Digital Development.

The Minister, asserted that the crypto industry in the country is not opening the door to mass employment neither is it producing efficient and essential good or products. Furthermore, BTC miners are currently on the long end of the stick, being taxed less than he rest of the population.

As a result, the president demands that a tax increase be put in place on all crypto mining activities. Further major regulations will be integrated by 1st April

As a result of the crackdown, many companies are relocating their operations. A total of 6 reported companies have officially revealed plans to move away from the country. One of the biggest ones, BitFuFu, is already on the way to moving to the US.

Crypto mining companies are aiming at a relocation either within the US or in Russia, although the latter seems like an unlikely jurisdiction for relocation, considering the current developments that will result in massive economic changes.