The minister of Kazakhstan said that all legal mining firms in the country will not face any kind of unfair action by the authorities to restrict the electricity supply.
At present, the Kazakhstan government is working on an extended and strong crypto law framework to impose restrictions on unlawful activities in the crypto industry of Kazakhstan. But on the other hand, they are looking for the long term existence of this industry.
On 10 November, an official press release announced that all the crypto mining activities of the firms, which are under legal status and approved by the government authorities, will not face any kind of country’s energy security.
After the ban of crypto mining and trading by China, many crypto mining firms shifted to Kazakhstan because of the crypto-friendly environment and also cheap electricity.
Kazakhstan is a country that is dependent on fossil fuels to generate electricity for its citizens. But since September of this year, electricity grids are sharing electricity with the crypto mining operations. And these crypto mining operations are consuming huge amounts of electricity.
However, the laws of Kazakhstan are in favour of the crypto mining firms but there are few crypto mining firms, which are illegally using electricity in the form of domestic purposes. So the electricity supplier company is facing a huge loss and also they want more resources.
Magnum Mirzagaliyev, Kazakhstan’s Minister of Energy, held a meeting with the mining firm operators of the nation. And raised their concern but ensured that no one lawful firm will face any scrutiny issues.
The main purpose of the meeting was also to push the companies to invest in sustainable and green electricity generation projects. For these ministries of energy and digital development, the Kazakhstan Association of Blockchain Technologies, the Association of the Blockchain and the Data Center and Technology Industry, and KEGOC signed an agreement to prohibit electricity rationing.