Kazakhstan Clamps Down 100+ Illegal Cryptocurrency Mining Facilities March 16, 2022 March 16, 2022 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsMarch 16, 2022 by Kelly Cromley

Kazakhstan Clamps Down 100+ Illegal Cryptocurrency Mining Facilities

Another round of operations against illicit miners has begun in what is now the world’s second-biggest mining center. The Kazakh government has stated that more than 100 businesses have been forced to close because of the clamp down, with 50% of them closing down on their own will as well as the other 50% being forced to close.

In terms of Bitcoin hashrate, Kazakhstan stands next to the US with 35.4%, and slightly before Russia, which stands third, with 11%. Government officials have recently begun targeting illicit miners, who they say use as much electricity as the legitimate miners.

The Financial Monitoring Agency of the Republic of Kazakhstan stated today that it has shut down 51 unlawful mining facilities. A further 55 had willingly terminated activities as a result of the enforcement activity of the watchdog.

Miners were ordered to halt their operations, disassemble their mining rigs, and dislodge them from their installation locations, according to a statement from a federal regulatory office. Despite this, it was found that the offenses committed by each individual were distinct. As a general rule, all miners in the United States are required to have a valid mining license before they may work.

In the case of some, the offense was tax fraud, while in the case of others, it was unlawfully connecting to the national electrical system. They used government-designated industrial production electricity for crypto mining purposes. As a result, some of the most important players in these activities were named by the agency. There was an ex-chairman of a government gas business, a former chief of the state police’s narcotic section, and the country’s 17th wealthiest individual.

There were approximately 65,000 units of mining hardware seized and 25 criminal proceedings filed against the perpetrators as a result of this operation. Afterward, the nation’s electric company said that the country’s power usage had dropped by 600 MWh.

Since 2021, the Kazakh cryptocurrency mining business has seen a series of obstacles. In January, citizens gathered to the streets protesting a midnight increase in gasoline prices, which resulted in the deaths of more than 160 people. Due to the demonstrations, the Internet was down for five days, making mining BTC difficult and resulting in a drop in hashrate.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.