Kazakhstan begins power rationing for crypto mining operations

On October 21, Kazakhstan’s national power grid operator has begun restricting electricity rationing to the country’s largest consumers - crypto miners.

Eurasianet analyzed that faced with sudden energy shortages, officials must be regretting their recent foray into the cryptocurrency industry.

Energy Minister Magzum Mirzagaliyev linked the surge in electricity demand to crypto mining and proposed limiting power supply to 1 megawatt per mining farm and 100 megawatts for the industry as a whole.

The proposal has been criticized by miners. The Blockchain and Data Center Industry Association believes that the government should crack down on illegal miners instead of restricting companies that pay taxes. On October 15, the national grid operator KEGOC announced power cuts after the closure of three large coal-fired power plants. KEGOC did not directly blame the miners, but it gave a similar statement to the energy minister, saying that it would cut off "over-consuming" customers.