Restriction Comes From Important Country To Bitcoin And Cryptocurrency Mining

President of Kazakhstan Kassym Cömert Tokayev, according to a statement published on the Presidency website, bitcoin And cryptocurrency signed the law to limit the energy used by miners.

Cryptocurrency Miners in Kazakhstan Can Only Use Surplus Electricity

The Central Asian country has been struggling to meet its electricity demand as Bitcoin miners, including those operating illegally, have flocked to the region over the past few years, straining its grid infrastructure. Still hoping to develop its broad crypto ecosystem, the country is tightening regulations for miners.

The new law significantly limits the industry’s energy use by allowing miners to consume electricity from the national grid only when there is surplus. This surplus will be distributed among licensed operators who can bid for electricity.

Miners using renewable energy, imported electricity or their own power generation capacity that is not connected to the grid will be exempted from this limit.

The legislation mandates that miners be licensed by the authorities and makes some minor adjustments to the taxation regime for the industry.

The government will also approve a list of mining pools available to firms and require miners to sell their cryptos to crypto exchanges registered in the country’s special economic zone, Astana International Financial Centre. Miners will have to sell half of their crypto to these exchanges by 2024 and 75% by 2025.

Kazakhstan also wants to regulate digital asset exchanges after the bankruptcy of FTX and many other crypto companies.

After China banned crypto mining, the new stop of many miners was Kazakhstan, which has cheap energy opportunities.

*Not investment advice.

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