Law enforcement officials in Kazakhstan have busted another mining facility as they crack down on illegal activities in the region. The crypto farm, located at the railway station, is the latest targeted mining operation in a country that is grappling with power shortages.
Authorities seize more than 100 mining rigs from unauthorized farms in Kazakhstan
Kazakhstan, a crypto mining hotspot since last year, has been trying to limit operations in its crypto mining sector, which expanded rapidly after China launched an offensive against the industry in May 2021. The government is mostly going after illegal miners this year, though the power shortages and the blackouts have been blamed for an energy-hungry industry as a whole.
After recently shutting down more than 100 crypto farms, including registered mining entities that “voluntarily” halted their activities, according to an official announcement, law enforcement officials raided another facility that mines digital currencies. hit. As per the report of 24 Khabar, the farm was set up in a room in the premises of Kundizdi railway station.
According to the country’s Transport Police Department, which conducted the search, officers found 130 crypto mining units as well as hard drives and spare parts. A highly placed police officer told the news outlet that the mining equipment has been confiscated and a pre-trial investigation has been launched. Quoting the press service of the department, he said:
Other information is not subject to disclosure in accordance with Article 201 of the Code of Criminal Procedure of the Republic of Kazakhstan.
Initially a promising destination for crypto miners moving out of China, due to its limited electricity rates, Kazakhstan has begun targeting mining operations over the past few weeks as part of efforts to tackle its growing energy deficit. Many illegal farms were taken off the grid and many registered companies were hit by power cuts during the cold winter months. The action was covered by the local media.
In February, President Kassym-Jomart Tokayev ordered the Financial Monitoring Agency to identify all mining entities with the help of other relevant government bodies. The watchdog has done many inspections, confirmed the tax, customs and technical documentation.
Political turmoil in January and frequent interruptions in electricity supply has already forced some mining companies to relocate to other countries such as the US. In late February, the National Association of the Blockchain and Data Center Industry disclosed that authorized The miners had already taken out a third of their equipment. The country further warned that Kazakhstan may lose its leading position in terms of computing power in the bitcoin network.
Do you think the Kazakhstani authorities will continue to crack down on the crypto mining sector? Share your expectations in the comment section below.
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