New Regulatory Changes in Kazakhstan

We would like to update our clients and partners about the latest regulatory changes in Kazakhstan that have resulted from the ongoing energy crisis. Kazakhstan has been suffering energy shortages since October 2021 due in part to the influx of crypto mining companies after China banned crypto mining in the summer of 2021. Local government authorities in Kazakhstan have been trying to regulate mining operations and they are now cracking down on unlicensed crypto miners to reduce the load on the country’s energy grid.

According to a ministerial order published last week, the government of Kazakhstan now requires all crypto miners to register their operations with the authorities. As stated in this official order issued on April 29^th 2022, and put into effect on May 13^th 2022 all crypto mining companies will now have to submit business registration data, along with information about personnel, the amount of power they consume or plan to consume, all IP addresses used, their planned investments, the location of the mining operation, a copy of the cargo customs declaration or a document confirming that the equipment was obtained legally, and the technical conditions for connecting the operation to the electric power grid and confirmation that those involved are residents of Kazakhstan, among other documents, according to the order. The order also mentions that existing miners will also have to inform the authorities about the amount and type of mining infrastructure used.

As a result of these new requirements, MineBest’s local partners responsible for running and maintaining our mining facilities in Kazakhstan are currently unable to operate or export crypto mining equipment to other mining farms abroad due to government audits and the temporary mining ban that has been imposed. It is currently unclear how and when this situation will improve; however, after consulting with local legal authorities, it is expected that the government will eventually let entities such as our local partners resume mining operations or at the very least make it possible to export the mining machines to other locations, as and when the government completes its due diligence process.

As a result, mining facilities in Kazakhstan serving MineBest continue to remain offline. We will keep you posted once there is any new development. Thank you for your continued support.

Sincerely,

The MineBest Team

Source: https://finance.yahoo.com/news/kazakhstan-orders-crypto-miners-register-161427998.html