Kazakhstan Is Stabilizing, Government Claims as Crypto Miners Look to Future in Country – Mining Bitcoin News

Central authorities claim that the situation throughout Kazakhstan, which was hit by anti-government protests in the first week of the year, has returned to normal. The country’s massive crypto-mining industry, which has faced internet outages during civil unrest as well as power shortages, hopes the country will nonetheless remain an attractive location for miners.

President Tokayev has a nation under control

After days of turmoil, the administration of embattled Kazakhstan President Kassym-Jomart Tokayev says it has now stabilized the country. Law enforcement agencies have regained control of all administrative buildings attacked by protesters, officials informed the head of state during Sunday’s meeting, according to a statement released.

The unrest in Kazakhstan began on January 2 with demonstrations in the western province of Mangistu against rising prices for natural gas and other fuels, which turned into mass political protests that swept the Central Asian Republic. Official sources indicated that an unconfirmed number of people were killed in the clashes and 5,800 people were arrested, including foreigners.

Russia’s Interfax news agency quoted Tokayev as confirming that the security forces will implement all necessary measures to fully restore public law and order in the country. The President issued an order to form a special government committee tasked with addressing the repercussions of the riots in the affected areas.

Despite the challenges, cryptocurrency miners see the future in Kazakhstan

With its low and limited electricity rates and an overall positive attitude towards the cryptocurrency industry, Kazakhstan has attracted many mining companies amid the mass exodus caused by the government crackdown on the sector in China since May 2021. However, the influx of miners, which led to an increase in the country, has been dumped. The share in the global Bitcoin hash rate of more than 18% is blamed for a growing electricity deficit, which topped 7% in the first three quarters of last year.

According to the Association of Datacenter and Blockchain Industry of Kazakhstan (NABCD), which unites two-thirds of legal miners in the country, the riots did not affect the areas where official crypto miners operate. In a press release provided by Coinstelegram, the industry organization explained that the recent drop in Bitcoin’s hash rate is caused by temporary internet outages, insisting that the impact of the current situation on the sector and crypto prices is a short-term one. NABCD President Alan Dorgiev commented:

At the moment, the member companies of the association are operating as usual. On our part, we work to ensure that CSR contributes positively to the lives of the residents of the areas where the data centers are located.

NABCD believes that “from a strategic perspective, Kazakhstan will remain one of the most attractive areas for the development of cryptocurrency mining.” It maintains that it is now maintaining dialogue with relevant government authorities and has announced that previously imposed restrictions on electricity supply to legal mining entities have been eased. The news comes after a report in December revealed that some mining companies have started moving equipment out of the country due to a power outage.

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Association, Bitcoin, Blockchain, Crypto, Crypto Miners, Crypto Mining, Cryptocurrencies, Cryptocurrency, Data Centers, Deficits, Offers, Electricity, Energy, Fuel, Hashrate, Internet, Kazakhstan, Miners, Mining, Outages, Energy, Chief, Prices, protests, riots, shortage situation, unrest

Do you expect Kazakhstan to remain a major hot spot for cryptocurrency mining? Tell us in the comments section below.

Lubomir Tasev

Lubomir Tasev is an Eastern European technologist who likes to quote Hitchens: “Being a writer is what I am now, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are other sources of inspiration.

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