XCH Miner

12, Nov

Crypto miners consume enough electricity to power a city — Kazakhstan intensifies crackdown

Kazakh authorities recently dismantled several power companies accused of illegally supplying electricity to cryptocurrency miners. According to a statement, the Financial Monitoring Department (DFM) and the National Security Committee (NSC) of East Kazakhstan uncovered illegal electricity sales worth approximately $16.5 million (9 billion tenge).

According to Amendments to the Digital Assets, Informatization and Certain Legislative Acts (No. 194-VII), cryptocurrency miners are required to purchase electricity through a state-operated platform, specifically the Ministry of Energy. However, the statement notes that some energy supply companies illegally supplied mining companies with electricity intended for public and strategically important enterprises for two consecutive years.

Furthermore, cryptocurrency miners are only permitted to purchase electricity from the national grid in cases of recorded power surplus. This is intended to prevent miners from consuming electricity intended for public and essential services.

However, Kazakh authorities argue that the total amount of electricity misappropriated exceeds 50 megawatt-hours—enough to power a city of 50,000 to 70,000 people.

"With the proceeds of the crime, the organizers purchased two apartments and four cars in the capital. These assets have been frozen by court order and may be confiscated," Kazakh authorities stated.

The once welcoming environment for cryptocurrency miners in Kazakhstan has deteriorated significantly, leading to a growing number of miners leaving the country. This changing regulatory and operational uncertainty has already resulted in the departure of BTC miner Canaan, making him the latest company to exit the Central Asian nation.