Home News Kazakhstan shuts down crypto mining farms until February

Kazakhstan shuts down crypto mining farms until February

5481
0

The Kazakhstan Electricity Grid Operating Company (KEGOC) has limited the supply of electricity to mining farms, local media revealed.

Thus, the letter from KEGOC, distributed on the network, says about the cancellation of electricity supplies to miners from January 24 to January 31, 2022. Moreover, all companies registered in Kazakhstan as miners received such notification.

The electricity utility has sent letters to all 69 registered mining companies informing them of the cuts; citing “the tense situation with maintaining the balance of electricity and capacity in the unified energy system” as the primary reason.

The tense situation with maintaining the balance of electricity and capacity

Earlier in Uzbekistan, Kyrgyzstan and Kazakhstan, power outages began in the background. KEGOC called the reason “a power surge due to an emergency imbalance created by the Central Asian energy system.”

Recall, according to the estimates of the Cambridge Bitcoin Electricity Consumption Index (CBECI), Kazakhstan has become one of the world leaders in Bitcoin hashrate amid the migration of miners from China. Bitcoin (BTC) miners in the United States account for 35.4% of the worldwide BTC mining hash rate distribution.

Kazakhstan (18%), Russia (11%) were the next two largest Bitcoin mining centers outside of the US, according to CBECI statistics. Following China’s prohibition on crypto mining, these three countries have gained a substantial market share.

A shortage of electricity

In September, the Kazakh authorities announced a shortage of electricity and proposed to limit the consumption of miners. Against this background, companies engaged in the mining of cryptocurrencies began to leave the country.

For example, the mining company BitFuFu turned off the devices located in Kazakhstan; due to problems with power supply in the country and began the relocation of equipment to the US. Other representatives of the industry have also decided to take this step.

The main problem was the introduction by local authorities of rationing of electricity supplies for miners amid the impending energy crisis, BitFuFu noted. Due to the downtime of the equipment, the company decided to move it. In a conversation with CoinDesk, representatives of the company confirmed that the miners have already been delivered to the USA.

Previous articleCloud miner BitFuFu looks at US listing via SPAC merger
Next articleRussian Finance Ministry submits crypto regulatory framework for review