Kazakhstan forces 106 cryptocurrency mines to close

Kazakhstan forces 106 cryptocurrency mines to close

Kazakhstan forces 106 cryptocurrency mines to close By DailyBitcoin Editor

According to the government, well-known political and business figures in that country were behind some of the mines, including the brother of former President Nursultan Nazarbayev.

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Kazakhstan’s crackdown on illegal cryptocurrency mining has forced an additional 106 miners to halt their operations, according to a government statement today.

Following investigations by the Asian country’s financial supervisory agency and other state agencies, 55 of the mines closed voluntarily and 51 were forced to close, according to the statement.. The 51 forced to close are suspected of evading customs duties and placing equipment in special economic zones without permission, according to the statement.

The inspections revealed that some well-known political and business figures in that country were involved in crypto mining. According to the statement, they included Bolat Nazarbayev, brother of former President Nursultan Nazarbayev; Alexander Klebanov, president of Central Asian Electric Power Corp., which provides electricity to more than 2 million people, according to its website; and Kairat Itegmenov, listed by Forbes as the 17th richest man in Kazakhstan.

The central Asian country has been dealing with a severe electricity shortage since the fall of 2021, in part due to an influx of crypto miners from China, but also due to infrastructure failures. The government has decided to end illegal mines to deal with energy problems.

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In total, the financial supervision agency opened 25 criminal cases and seized 67,000 machines valued at 100 billion Kazakh tenge (193 million US dollars), according to the statement.

Kazakhstan against crypto

It is worth remembering that at the end of February, the government said that it destroyed 202 megawatts of illegal cryptomines. But not only that, also in February, the President of Kazakhstan, Kassym-Jomart Tokayev, called for an even higher tax on crypto mining. This occurred, moreover, only six weeks after a new tax on the industry came into force, which began on January 1, 2022.

Even before that, in July 2021, the government announced that it would impose the crypto mining tax starting this year, what it had not warned is that it would also act so radically against miners.

Sources: government statement, coin desk, archive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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