Kazakhstan will not restrict electricity to legal miners

Kazakhstan will not restrict electricity to legal miners

Legitimate crypto miners will not face restrictions and will not be disconnected from the national network until they threaten the country's energy security, Kazakhstan's Energy Minister Magzum Mirzagaliyev said in a meeting with representatives of the mining industry, according to a ministry press release.

Kazakhstan, which is dependent on fossil fuels, has experienced electricity shortages due to an influx of miners this year. National grid operator KEGOC has rationed electricity for miners since September and the government has proposed a bill that will limit the supply of electricity through the national grid to new farms to 100 MW.

Mirzagaliyev called on legitimate miners to jointly seek "solutions that ensure the reliability of a single electric power system."

Local blockchain and data center industry associations have said they are willing to import electricity and invest in renewable energy projects.

Alan Dordzhiev, chairman of the Blockchain, Data Center and Technology Industry Association, said the government and the private sector must work together to combat gray miners, mainly in southern parts of Kazakhstan, that connect to the network without proper authorization.

At the meeting of the Ministry of Energy and Digital Development, the Kazakhstan Association of Blockchain Technologies and the Association of Blockchain, Data Centers and Technology Industry, as well as KEGOC signed a protocol on preventing electricity rationing and developing demand reforms to balance the energy market and attract investment for renewable projects. energy sources.

Kazakhstan became the world's second largest Bitcoin miner after the United States after China began suppressing cryptocurrency in May this year.

The crypto industry is expected to generate 500 billion tenge ($ 1,16 billion) in the next five years, according to a ministry statement.