Cryptocurrency has always been subjected to rife controversies and incessant backlash. It has never been able to steer clear of the mainstream media as millions of users have already flocked towards its aerodynamic world. In a recent development coming from Kazakhstan, the news is quite grim for the current & future traders. What made Kazakhstan to eliminate all the active crypto mines in the country, and what instigated the governance system to take such a bold step amid the constant rise of digital assets? oilprofit.app will address this issue to its depth to gain sound reasoning as what triggered the authorities to take such a bold step overnight.
Crypto mines run illegally in most developing nations, which is why they are always expected to shut down their operations once the governing authority decides to crack down upon them. Kazakhstan is not a new country where such illegal crypto mines are running rampant. In a bid to eliminate such dangers from the financial ecosystem of the country, the Kazakhstan government has successfully shut down at least 13 crypto mines that used to function illegally. It used to consume a colossal power capacity of 202 MW, and the revelation was made during a recent inspection.
Hotspots of Crypto mining
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Such crypto mines were located in different regions of the country, such as a prominent region of Karaganda that hosted the mining facilities. It hosted 31 MW of total capacity, which is operating in direct defiance to the country’s protocols set against the use of crypto miners. Moreover, all the pertinent mining pieces of equipment of 22 MW were also subsequently seized. It happened in one of the hotspot regions known as the Pavlodar region.
Kazakhstan’s government has been incredibly vocal about illegal crypto mining and has been continually cracking down on such unauthorized activities. It had already highlighted its discomfort with the surge in the crypto mines across the country. Hence, it was just a matter of time when they actually took stringent steps such as this to put a leash on the proliferation of crypto miners.
An overdue clampdown
In addition to this, established mining hardware located in yet another hotspot region, Turkistan, was also shut down recently. It along consumed a power capacity of 3.28 MW. Moreover, there are other predominant locations where such crypto mines were recently unplugged. Some of those locations are Akmola, Kostanay, Nur-Sultan, Almaty, Shymkent, etc. All these locations exhausted a massive combination of power capacity, and they were already warned by the governing authority but to no avail.
The recent clampdown of government on such crypto mines displays how hell-bent the incumbent government is to put crypto on the right track. It does not want the population to get swayed by the crypto industry, which will have a serious impact on the financial system orchestrated by the government itself.
Mega power consumption
With a profuse number of crypto mines being dismantled across the country, it is only a matter of time before the government will come up with stringent laws whosoever tries to resuscitate such crypto mines. Miners are in distress as their only source to mine bitcoins & other cryptocurrencies have been annihilated. They are bound to look for other innovative ways to channel their operations. Some miners have also introduced a new phenomenon called “Self-restrictions,” which is yet to be inspected by the authority to determine its implications.
The only problem that the authority had with such crypto mines was the overuse of power consumption that wreaked havoc on the environment. Cryptocurrencies are known for exhausting massive electric consumption to seamlessly conduct the mining process. Such large-scale consumption was not fair for the environment as issues had already been raised by the prominent environmentalists in the country.
Conclusion
With a significant increase in power consumption, crypto mining left no option for the Kazakhstan government but to shut them all down at once. The move crippled the miners’ ability, but at least the environmentalists can take a sigh of relief. The entire crypto mining scenario in the country accounts for 18% when the mining is addressed from a global perspective. It was indeed an alarming rate that needed to be addressed immediately.
