Kazakhstan is planning to put restrictions on cryptocurrency mining activities since Kazakhstan’s Ministry of Energy intends to limit cryptocurrency miners’ activities as a precaution against power outages in the country.
According to a bill signed by the newly appointed energy minister, Magzum Maratuly Myrzagaliev, all newly authorized power plants will be limited to 1 MW of energy capacity for two years beginning October 1, 2021.
Kazakhstan started to play an important role for miners after China’s measures against cryptocurrency mining. As you may be aware, after China banned cryptocurrency mining, miners began to migrate to countries such as Kazakhstan.
The 1 MW limit is significantly lower than the current operating electricity limit for miners. However, that limit is greater than the consumption of many small cities. For example, BIT Mining Limited announced this week that it will invest in the Ohio region to increase its capacity to 100 MW.
Miners are causing power shortages in Kazakhstan!
However, the miners continue to put the Kazakhstan government to the test. Almaty, the country’s largest city, experienced widespread power outages in mid-July.
According to Kazakhstan Today, a local media outlet, the energy minister blamed the power outages on cryptocurrency miners at a conference he attended on September 30.
The Kazakhstan Ministry of Energy has proposed a new law that requires the country’s national grid operator, KEGOC, to inspect every 5 MW power plant within ten working days. KEGOC will investigate the methods cryptocurrency miners use to connect to power plants and share the findings with the ministry.