Kazakhstan has lately been facing major power issues, which has caused a significant spike in its electricity demand. It has risen to 8%, as compared to the previously-recorded 1-2%. Experts believe that the reason behind the same is the uncontrolled usage of power by huge computer farms that are involved in mining cryptocurrency.
Currently, Kazakhstan is importing electricity from Russia at much higher rates to somehow meet the demands. Just last month, three of the major power plants in the country had to face emergency shutdowns.
In light of the same, the Kazakhstan Electricity Grid Operating Company made an announcement that they would begin rationing electricity for fifty registered miners in the country. Other legitimate miners would be required to cough up close to 1 Kazakhstan Tenge per kWh to distinguish them from legal miners.
A member of the lower house of parliament in Kazakhstan further elaborated by stating that the new regulations and criteria for crypto mining in the country has been put into place to streamline operations, while also building a comprehensive ecosystem mainly for digital assets.
The reason for the massive amount of crypto mining in Kazakhstan can be attributed to China’s strict policies with regard to cryptocurrency mining in its mainland. Due to the same, Kazakhstan has become the new go-to destination for miners, as it proves to be much more affordable, while also providing access to more electricity options.
There is still lots of debate surrounding the exorbitant amount of energy required to mine cryptocurrency. Hopefully, newer technologies and regulations can help crypto developers around the world find a suitable solution to the problem.