Kazakh lawmakers propose registration for crypto firms, higher electricity rates for mining – mining bitcoin news

Kazakh parliamentarians have proposed establishing a state registration for cryptocurrency farms operating in the country. Concerned about the increasing use of energy in the sector, lawmakers want miners to charge higher prices for the electricity they use.

Majlis members want miners in Kazakhstan to register with government, pay more for electricity

A group of deputies from the lower house of Kazakhstan’s bicameral legislature, the Majlis, have expressed concern over the growing demand for electricity. MPs believe that the rise in the country is due to the influx of crypto mining companies, which is attracted by its low energy prices.

Kazakh lawmakers propose registration for crypto firms, higher power rates for mining

Members of the People’s Party of Kazakhstan have made proposals to address the growing situation. Lawmakers have called on Deputy Prime Minister Roman Schleier to create a special register for crypto farms that dismantle the country’s digital currency, according to a Tangreen News report.

Zhambyl Ahmetbekov, a deputy, noted that the growing number of mining companies moving to Central Asian countries significantly affects the amount of energy available. Foreign miners use a lot of electricity but they get their revenue abroad, which is of no benefit to Kazakhstan, he added:

In this case, it is proposed to create a legal registration for the so-called mining farms and introduce a special increased electricity tariff for them.

In addition to the high electricity rates, Mozilla members have called for the reintroduction of separate tariffs for the respective time zones of the day. Thus, prices will consider the customer’s maximum hours and grid load.

Kazakhstan’s Energy Minister Magzum Mirzagaliyev has revealed that this year’s electricity consumption has increased by%% compared to 2020. Consider restrictions on mining facilities.

Demand is growing due to the growing number of data centers dedicated to cryptocurrency mining, Mirzagaliyev told reporters. At the same time, he stressed that Kazakhstan needs to develop its crypto mining sector and announced that the country wants to jointly build a new 3,000-megawatt power plant in the next five years.

Amid the ongoing crackdown on bitcoin mining and other crypto-related activities in China, the Central Asian region has attracted many businesses from the industry with its cheap energy. However, miners in Kazakhstan compete with other industries and families for electricity, which worries the Nur-Sultan authorities.

In June of this year, President Qasim-Jomart Tokayev signed a law amending the country’s law on “paying taxes and other mandatory payments in the budget.” A bill passed in parliament earlier that month introduced a 1 Kazakhstan tenge (approximately 00 0.0023) surcharge per kilowatt-hour used by cryptocurrency miners. The new fee will be imposed on January 1, 2022.

Do you think Kazakhstan will impose a ban on cryptocurrency mining because of its power shortages? Tell us in the comments section below.

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