Kazakhstan Extends Power Cuts for Cryptocurrency Miners For Another Week

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Kazakhstan has extended power cuts for cryptocurrency mining operations until February 7. The power cut was supposed to end by January 31. However, ongoing difficulties with the power supply have forced the company to extend this ban until February 7. The crackdown on mining hubs in China led to the migration of many crypto mining rigs to Kazakhstan. However, mining operations gobbled enormous amounts of electricity, which led to power shortages in the former Soviet Republic leading to the ban on mining activities.

The state-run Kazakhstan Electricity Grid Operating Company (KEGOC) has informed Data centers authorized to mint digital currencies in Kazakhstan that they will not operate until February 7. The news comes after the country’s power distribution company extended previously introduced supply restrictions for another week.

In a notice quoted by Forklog, the utility cited unresolved problems with maintaining a stable electricity supply as the reason for continuing the cessation of mining activities.

Alan Dorjiyev, head of the National Association of Blockchain and Data Center Industry of Kazakhstan, told a crypto news outlet that the industry hopes to clarify from the Ministry of Energy before they plan their future operations in the country. Alan’s organization brings under its banner dozens of registered mining entities.

Kazakhstan has been facing power outages since the influx of miners from neighboring China after the Communist Government cracked down on all crypto mining activities. The Chinese government cited environmental reasons for the ban.

Kazakhstan has enormous reserves of gas and fossil fuel, and the cheap electricity attracted the miners since crypto mining required vast quantities of power. The influx of miners, which increased the country’s share in the global bitcoin hash rate to over 18%, has been blamed for the electricity shortages.

The massive protests caused by rising inflation and fuel costs have hit Kazakhstan. The government cracked down on the demonstrations with help from Russian troops. Internet was shut down, and this badly affected the mining activities. Things have settled down, and mining activities restarted only to be hit by the latest power outages.

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Parasshuram has been online in various capacities as a pro-blogger, top researcher, and now a senior editor at CoinGape.com. He has over 14 years of experience in the field of online publishing. Mr Shalgar can be reached at [email protected]

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