• Wed. Jun 7th, 2023

Kazakhstan Premier Urges Legislators To Draft Crypto Mining Regulations On Emergency Basis

Nov 4, 2021

The electricity crisis for a state could be quite impactful but it could be worse than anything if the demand continues to grow. This is exactly what is happening for the time being in the land-lock state, Kazakhstan, the second home to crypto miners.

Since June 2021, Kazakhstan has had to go through a situation which it have never ever faced before. The country is fighting against the worse electricity crisis of its history and the crisis has come only a year ago. Otherwise, Kazakhstan was a self-sufficient country in terms of electricity. Even the rate of electricity for household consumers as well as for the commercial consumers were relatively cheaper than other countries.

But the very aspect of cheap electricity rates brought huge foreign investment as well as the crisis. Without determining the impacts of crypto mining, the country legalized mining activities. Even international miners were invited by Kazakhstan to come and set up mining facilities. This led an influx of miners from across the world to come into Kazakhstan and develop mega farming facilities. Resultantly, in less than a year, it started to become obvious that there will soon be an electricity crisis. Now it is clear that eventually the crisis has triggered and emergency situation has arisen in Kazakhstan.

In view of this matter, the President of Kazakhstan, Kassym-Jomart Tokayev, has claimed that the situation is that of an emergency. The state has to act proactively and address the issue before the crisis turns into country’s worst nightmare, said President Tokayev.

Regarding the electricity shortage an “emergency”, the President also instructed the legislators to act accordingly. The President has specifically asked them to come up with a law which would aim at regulating the Kazakhstan’s mining industry. He said that though the activity is legal, yet considering the crisis, the Government as well as miners must all be on the same page. The crisis is for everyone, including the miners who have come from abroad and are mining in Kazakhstan.

However, the President also clarified that without discriminating anyone’s rights, the law should be made only to address the crisis. The law shouldn’t abrogate miners’ right to do business. Instead, a cautious approach must be adopted to keep the business environment intact.

From the statement of Kazakhstan’s President it is obvious that the premier does not wish to impose a ban on mining activities. Instead, he wants the activities to be regulated in a sustainable environment.

In the meanwhile, the President has also ensured that the Government is working towards outsourcing electricity from Russia. However, the deal hasn’t been finalized but it will be mutualized before the end of the year. Until then, Kazakhstan is on its own to keep the industry going while minimizing the impacts of the crisis.

Don't Miss Out On Bitcoin Evolution!

The Top Bitcoin and Cryptocurrency Price Prediction Software / Trading Robot

Sign Up

Try Crypto Engine With a Trusted Broker