Thursday, July 25, 2024

More regulations are being proposed in Kazakhstan to streamline the mining sector

Bitcoin mining has been a serious problem for many years for quite a long time. The biggest problem comes in the form of illegal Bitcoin miners, who consume domestic electricity for mining and do not pay a special tax for mining Bitcoin. Over the past few months, the situation has worsened in many countries like Kazakhstan and Iran. In Kazakhstan, however, authorities are now taking a strict stance against it. Kazakhstan remains one of the greatest contributors to global Bitcoin hash rates. The government also does not intend to ban mining, since it would mean a decreased source of revenue. But illegal miners and electricity shortage remains a pertinent issue, and now the government wants to streamline the mining sector with modified regulations.

According to member of the lower house of Kazakhstan Dyusenbay Turganov, new and more wide regulatory frameworks are needed to tackle the miner problem. The existing legal framework does not give enough scope for law enforcement to deal with illegal miners. Being a relatively recent phenomenon, the nature of the crime in illegal crypto mining is not yet specified. All these issues make dealing with illegal mining a difficult and scattered process. With an all-encompassing regulatory framework, that would be taken care of and the country will get out of its electricity supply problems.

If Kazakhstan imposes new laws on Bitcoin mining, it will have an impact on the global Bitcoin hash rates. Whether that plummets the market or not is still under debate, but might well be likely.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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