Tuesday, September 27, 2022

Raids in Kazakhstan Forces over 100 Illegal Mining firms out of Operation

The crackdown of the activities of illegal crypto miners in Kazakhstan has yielded more fruit as another 106 miners seized their mining operations according to the authorities in an announcement made by the government earlier this week.

After China’s crackdown on players in the mining industries due to environmental reasons, the central Asian country experienced an inflow of miners which raised the country’s share in the global bitcoin hash rate and has made the country battle with power shortages ever since. In regards to this, illegal mining activities have thus increased in the nation, resulting in the comprehensive inspection of activities of crypto miners by the Head of the state’s Agency for financial monitoring.

As a result of the inspection by the Financial Monitoring Agency of the Republic of Kazakhstan, 55 illegal mining firms closed shop willingly while the operations of an additional 51 firms were canceled. These firms are scattered in several parts of the central Asian country.

The mining farms whose operations were terminated never told any authority when they started work nor did they follow due process. Investigations also showed that some high-ranked businessmen and politicians were collaborators in the unlawful activity. The list of those indicted in the investigation includes Alexander Klebanov, the ex-chairman of Qazaqgoz; Kairat Itegmenov, the 17th richest man in Kazakhstan according to Forbes, amongst others.

The raid, which trails a similar crackdown by Chinese police authorities earlier this month, saw the agency confiscate 67000 miners worth $193 million. It also filed a total of 25 criminal cases according to the release which also noted that while the ministry continues with its raid and clampdown on illegal crypto mining firms, it will nonetheless recognize licensed mining firms.

The government targeted illegal mining firms because of the burden their activities placed on the nation’s power grid. The power consumed by the illegal miners should have been channeled into industrial production. The measures taken by the agency did not only help to suppress the growth of electricity consumption but also helped to release energy.

The clampdown of the illegal mining firms does not in any way show that the government is planning an extensive crackdown on crypto mining as there are plans for a practical regulatory approach that will benefit all the parties involved.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

Related Articles

Stay Connected

0FansLike
0FollowersFollow
2,050FollowersFollow

Latest Articles

%d bloggers like this: