Kazakhstan begins cleaning up digital mining companies

Kazakhstan’s Deputy Energy Minister Kairat Rakhimov recently announced that the country will begin cleaning up illegal cryptocurrency “mining” companies and plans to impose some restrictions on activities in this area.

Rahimov said that "with the arrival of mining companies, the situation of the country's power system has become very bad, and consumption has increased by more than 7% this year. If companies want to open virtual currency processing centers in Kazakhstan, they must first register and obtain legal entity status before they can obtain permission to install facilities.

However, Rakhimov also clarified that virtual currency mining companies officially registered in Kazakhstan will not be discriminated against and will continue to operate in accordance with the contract. In June 2021, the President of Kazakhstan signed a decree to charge fees for digital mining activities in the country, and the effective date of this regulation is January 1, 2022.