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Power deficit forces crypto miners to leave Kazakhstan

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Electricity shortages have affected Kazakhstan’s growing crypto mining industry this year. According to a media report, some miners, including those who moved in during China’s crackdown on the industry, are now looking to relocate to countries with more stable energy supplies, such as the United States.

Thus, the Central Asian country has capped electricity rates and is a major fossil fuel producer. However, the country’s aging infrastructure and weak generation capacity have failed; to meet the rapidly growing demand for electricity required to run the energy-intensive coin minting facilities.

Therefore, the authorities of Kazakhstan returned to the issue of creating nuclear generation in the country to combat the shortage of electricity. Business daily newspaper Vedomosti with reference to the statement of the Minister of Energy Magzum Myrzagaliev reported this. The discussion took place after calculating the production and consumption of electricity until 2035.

Creating nuclear generation to combat the shortage of electricity

Among the possible sites for the construction of nuclear power plants are the village of Ulken in the Alma-Ata region; and Kurchatov town in the East Kazakhstan region. The final decision has not been made yet.

In 2014, the Chairman of the Board of the national atomic company Kazatomprom signed a memorandum with Rosatom on the construction of a nuclear power plant. However, in 2016, former Minister of Energy Kanat Bozumbaev said that the country was not experiencing a shortage of capacity; and was not going to build a nuclear power plant within the next seven years.

If a new project will approve, the work period may be up to 10 years. So far, the country is coping with the deficit due to overflows from the Russian Federation and unplanned inclusions of Russian power plants.

Canaan delivered 2000 Avalon Bitcoin miners

Earlier in July, Kazakhstan introduced new energy fees for crypto miners. As foreign portals pointed out, more than 6% of machines used for currency mining are concentrated in the country.

Such a market could not remain outside the attention of the authorities for a long time. If the regulators will adopt the Tax Code, then from January 2022 a tax levy of 1 tenge per kilowatt per hour will come into force.

Previously in November, Canaan delivered 2000 Avalon Bitcoin miners to Kazakhstan. The total capacity of the equipment is 32,000 TH/s. In the future Canaan plans to “put into operation 850,000 TH/s”. In June, the company announced the opening of an after-sales service center and started Bitcoin mining in Kazakhstan.

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