Kazakhstan law limits electricity consumption of crypto miners
A law signed by President Kassym-Jomart Tokayev on Monday has definitively entered into force “On Digital Assets in the Republic of Kazakhstan” and the approval of the latest law, along with amendments to other legal acts such as the Tax Code, aims to make these assets more secure. Issuance and processing activities related to these are to be regulated and this includes in particular the mining process.
Local media reports that the purpose of this change is to create conditions for the development of crypto industries and competition between brothers from the market. The digital assets law that was adopted by parliament in late January specifically defines or assigns the powers of state bodies that oversee the sector and replaces the registration system currently in place for crypto miners and exchanges. Let us introduce the licensing process for
The licenses will be issued to the applicants in two groups for a period of 3 years in which they can carry out their mining operations. Entities that own data centers such as mining infrastructure that meet certain standards in terms of equipment and space and security fall under the first category. The second is for those who own hardware and rent space in crypto pharma and do not apply for energy quotas directly, while a separate set of requirements have been introduced for mining pools. They must have their own hardware and software installed in Kazakhstan and comply with the country’s information security regulations and other regulations.
In addition, they must have their own hardware and software installed in Kazakhstan and comply with the country’s information and security regulations and other applicable regulations. Additionally, crypto miners will be allowed to buy electricity from the national grid only if it is surplus and exclusively from the government-controlled and centralized exchange Quorum. While the price cap for this energy will be removed and trading will be done on market principles only.
Cheap and VIP power rates were one of the reasons that prompted mining companies to move to Pakistan in 2021 following China’s crackdown on the industry. Attracted to Pakistan. Areas that include temporarily disconnecting registered facilities and closing invalid accounts. A right to overpower was also imposed on authorized miners on 1 January.