Read full article at Cointelegraph.com News.

The government of Kazakhstan has laid out new reporting requirements for cryptocurrency mining operators with a keen eye on how the industry’s energy usage affects the local power grid.

The order published by the country’s Minister of Digital Development earlier this week compels digital mining businesses to provide comprehensive information 30 days before starting operations.

The electricity consumption and “technical specifications” for connection to the power grid must be provided before commencing operations. The amount and type of mining equipment used, the customs cargo declarations for that equipment and any investments planned for the next 12 months must also be included.

Kazakhstan was flooded with an influx of crypto miners after the Chinese government cracked down on the practice in mid-2021. The increased use of mining rigs in the country strained the energy supply forced the Kazakhstan government to take action, cutting off power to miners at times.

The new reporting requirements also state that miners must submit information about the legal entity carrying out the operation, who must be a resident of the Republic of Kazakhstan, along with contact information, as well as physical and IP addresses used in its activities.

The same information will need to be updated and submitted in a mandatory quarterly report, companies winding up mining operations will need to report when they’ve done so.

The recent order is an update to an existing order by the Minister in October 2020 laying out rules for providing information about digital mining activities.

Related: ‘We are the number two crypto miner in the world, and we see practically no financial return,’ says Kazakhstan President Tokayev

Proposals to hike power prices and increase taxes on crypto miners were brought forward in February, suggesting a 335% electricity price increase along with removing the value-added tax (VAT) exemption on mining equipment and instead taxing each individual piece.

Kazakhstani authorities have been attempting to root out illicit crypto mining operations in the country due to the load they place on the energy grid. In March, 106 illicit crypto mining operations were shut down following raids by the Financial Monitoring Agency which seized over 67,000 pieces of equipment at the time.

The most recent update to the Cambridge Bitcoin Electricity Consumption Index (CBECI) in August 2021 shows Kazakhstan was housing over 18% of the world’s BTC hash rate, second behind the United States.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

Categories:

Tags:

Comments are closed

Translate

Our Other Projects

EdgyBranding.com - Premium Domain Names.

Notezi.com - Social Network

ParisArtwork.org - Mid-century Paris NFTs, tokenized on the WAX blockchain.

NewYorkArtwork.org - Mid-century New York NFTs, tokenized on the Ethereum blockchain and offered on Rarible.

ClassicAutomobile.org - Classic Automobile News.

RSS
Facebook
Facebook
LinkedIn
LinkedIn