Kazakhstan Government Regulations Threaten Bitcoin Mining Hotspot

[RSRS]

New data from the Cambridge Center for Alternative Finance’s Bitcoin Electricity Consumption Index suggests that Kazakhstan is one of the new bitcoin mining hubs commanding approximately 18% of the global hashrate, up from 8% earlier this year. However, new policy coming down the legislative pipeline from the nation’s parliament might be putting an end to its growth story.

As miners saw the writing on the wall of a looming mining ban in China in late 2020 and early 2021, many left for Kazakhstan. The country was well-capitalized to benefit from this, due to an excess of power, explained Kevin Zhang, vice president of business development at Foundry, a mining-focused Digital Currency Group subsidiary, with the government providing generous tax incentives and rebates to get miners departing China to relocate to Kazakhstan. 

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