The miners started to act. Losses from cryptocurrency mining in China may be beneficial for Kazakhstan

Date: 02.06.2021

Under this heading, the editorial staff of the portal published an article today. We attach a translation of this article for your reference.

Crypto miners fleeing due to the recent crackdown in the PRC may turn to a neighboring country to continue their business. Kazakhstan is actively seeking to provide a new home for those looking to start a business outside of mainland China.

According to Kaktus Media, the number of mining operations in Kazakhstan is growing, while "entrepreneurs are getting richer", while the state is happy to get a share of the profits.

Last year, Kazakhstan's Ministry of National Economy announced that the country would begin to impose a 15 per cent tax rate on mining companies to help mitigate the economic impact of the COVID-19 pandemic.

The media noted that according to the Ministry of Digital Development and Aerospace Industry, the crypto mining industry in the country is estimated at about $ 216 million - $ 300 million per year, while only the income of large industrial miners is taken into account. However, small installations are becoming more and more popular and widespread, and therefore, the real number can be much higher, especially if the information about the relocation of Chinese mining enterprises turns out to be correct.

According to the data on tokens and the rating agency TokenInsight, Kazakhstan is one of the five largest mining countries in the world, and only China, the United States and Russia can boast of higher income from digital mining.

The government of the country contributed to the development of the mining industry and until 2019 announced that it would allow miners to work on a tax-free basis, while spending about $ 200 million on projects related to mining and crypto infrastructure, in which 17 mega crypto farms were launched.

Additionally, reported last week that Chinese mining company BIT Mining has partnered with an unnamed Kazakh company. The duo will jointly invest in a crypto mining center to be built in Kazakhstan, 80% of the costs will be covered by BIT Mining.

Meanwhile, the South China Morning Post reported that "large" Chinese "Bitcoin mining companies (BTC)" are "considering moving to North America and Central Asia" as conditions tighten at home.

The BTC.TOP chief added:

“North America has the best security and political environment for mining, but the price is high. Central Asia is located not far from the Xinjiang Uygur Autonomous Region. "

Xinjiang has a large land border with Kazakhstan in the north and Kyrgyzstan in the northwest.

However, according to Kaktus Media, Kyrgyzstan has temporarily banned mining due to a shortage of electricity. Though apparently illegal mining is rampant. So over the past couple of months, the State Committee for National Security of Kyrgyzstan has closed 6 large illegal mining centers located in industrial enterprises, by seizing more than 2,000 units of mining equipment.