Kazakhstan, one of the largest Bitcoin mining centers in the world, is working on a new regulation for the industry.
It didn’t take long before Kazakhstan’s power grid, much of it inherited from Soviet times, began to crumble under the new load. Technical failures in interconnection lines and power plants, along with demand from miners, have exacerbated the situation, such that Kazakhstan, a net energy exporter by 2021, now sometimes imports energy from Russia. Kazakhstan is also preparing a new regulation to protect its position in crypto mining.
Kazakhstan Restricts Energy Consumption in Crypto Mining
Kazakhstani regulators passed a bill last week that would impose a corporate tax on Bitcoin (BTC) miners and restrictions on the industry’s nationwide energy consumption.
According to the parliamentary website, the law, dubbed “On Regulating Digital Assets in Kazakhstan,” was one of three crypto-related laws passed by the country’s lower house, known as Mazhilis, last Thursday.
The bill is now going to the Senate for discussion and another round of voting. If the Senate approves the bill, the president must sign it before it becomes law.