After China, Kazakhstan is Cracking Down on Bitcoin Mining

At first, China was completely on board with the idea of decentralization and crypto mining taking place within the region. The very reason why there was such a large base camp for crypto miners settling their affairs and operations in China was because of cheap electricity and provision of all the technical materials they would ever need to set up their mining operation. But later on, either something broke, or China just decided to cut its ties with the environmentally brutal process that is crypto mining; it just started a very severe crackdown against the whole mining community settled within its bounds.

As a result, most of them fled the borders and were looking for other friendly frontiers which would be more acclimating to crypto mining. Some of them went on to build their mining camp in the United States while some preferred Europe over it, and some were distributed in Asian frontiers. Evidently, some of the crypto miners chose to build their crypto mining operation in Kazakhstan, but they were met with more restrictions and an even fierce stance than China.

Kazakhstan to Face Power Shortage

There are multiple policies that are being drummed up for these crypto miners, and these would be in effect sooner than later. It is not as if Kazakhstan is against the mining operation; in fact, the country has passed a bill back in 2020 legalizing cryptocurrency and mining within the region. It is definitely against excessive mining, which is something that those crypto miners are relocating to Kazakhstan are looking for. The country is at its brink when it comes to power production, and therefore power shortage is definitely a problem here.

The government is now definitely regretting their earlier decision to let crypto miners relocate within the region and use their electricity for blockchain operation. Due to these miners relocating to Kazakhstan, the country has been running into various power shortages in the past couple of months. There is even a proposal out there by the central bank which calls the state to impose a complete ban on cryptocurrencies and their mining within the region. In what direction the whole thing might move is still a mystery.