Kazakhstan will be limiting how much energy crypto miners can pull from the grid, according to a new law signed by its President TokayevKZ. egreechee reports
, flocked to its territory in the past couple of years, putting a strain on the grid infrastructure. Though still hoping to develop its broader ecosystem, the country is tightening regulations for miners.
The new law allows miners to consume electricity from the national grid only when there is a surplus, effectively capping the industry's energy usage. The surplus will be distributed among licensed operators, who will be able to bid for the power. Those miners using renewable energy, imported electricity, or their own energy generation capacity not connected to the grid, will be exempt from this cap.
The legislation mandates that miners be licensed by authorities and makes some minor adjustments to the taxation regime for the industry. The government will also be approving a list of mining pools that firms can use, and will oblige miners to sell their mined crypto to crypto exchanges registered with the country's special economic zone, the Astana International Finance Center. Miners will have to sell half of their crypto to such exchanges by 2024, and 75% by 2025.
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