Source: iStock / freedarst
Crypto miners fleeing China’s latest mining-focused crypto crackdown may turn to a nearby nation in an attempt to continue doing business, with Kazakhstan increasingly keen to provide a new home for those seeking to settle outside of mainland China. .
According to Kaktus Media, the number of mining operations in the country is “increasing”, while “mining entrepreneurs are getting rich”, and the state is happy to take a share of the profits.
Last year, the Ministry of Economy Kazakhstan announced that the nation would begin taxing miners at a rate of 15% in a bid to help mitigate the economic consequences of the COVID-19 pandemic.
And the media pointed out that, according to the figures from the Ministry of Digital Development , the crypto mining industry in Kazakhstan is now worth about US $ 216 million (US $ 300 million per year), although this only takes into account the income of large-scale industrial miners. With smaller-scale setups becoming more pervasive, the actual number could be higher, especially if reports of relocation from Chinese mining operations to the country are true.
Citing symbolic data and rating agency data TokenInsight , the news outlet reported that Kazakhstan is one of the top five mining countries in the world, with only China, the US and Russia boasting more mining revenue.
The nation’s government has encouraged the mining sector and as of 2019 was still talking about allowing miners to operate tax-free, spending some $ 200 million on mining projects and crypto infrastructure that have so far seen 17 mega crypto farms. in operation in Kazakhstan.
Furthermore, last week, Cryptonews.com reported that the Chinese mining company BIT Mining se has partnered with an unidentified Kazakhstan-based company. The duo will jointly invest in a crypto mining center to be built in Kazakh territory, and BIT Mining will cover 80% of the expenses.
Meanwhile, the South China Morning Post reported that “big” Chinese “Bitcoin (BTC)” mining companies are “looking to move to North America and Central Asia” as mainland crackdown intensifies.
The news outlet cited the major cryptocurrency exchange Huobi stating that its mining operations would now “focus on expanding” its “overseas presence” rather than on the mainland, while also citing Jiang Zhuoer, the founder of the group miner BTC.TOP, as if stating that he was thinking of moving his pool machines to North America and Central Asia. The head of BTC.TOP added:
“North America has the best political and security environment for mining, but the cost is high. Central Asia is close to the Xinjiang Uygur Autonomous Region. “
Xinjiang shares a large land border with Kazakhstan to the north and Kyrgyzstan to the northwest.
However, Kaktus Media reported that in Kyrgyzstan, a temporary blockade was placed on mining after the electricity shortage. Regardless, illegal mining companies appear to be flourishing. The Kyrgyz State National Security Committee it has shut down six large illegal mines operating in industrial facilities and seized more than 2,000 mining equipment in recent months.
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