Kazakhstan has extended power cuts for cryptocurrency mining operations until February 7. The power outage was supposed to end on January 31. However, continuing difficulties with the power supply forced the company to extend this ban until February 7. China has led to the migration of many cryptocurrency mining rigs to Kazakhstan. However, mining operations consumed huge amounts of electricity, causing power outages in the former Soviet Republic, leading to a ban on mining activities.
The state-owned Kazakhstan Electricity Grid Operating Company (KEGOC) has informed data centers authorized to mint digital currencies in Kazakhstan that they will not operate until February 7.
In a notice cited by Forklog, the utility cited unresolved issues with maintaining a constant supply of electricity as the reason for continuing to cease mining activities.
Alan Dorjiyev, director of the National Association of the Blockchain and Data Center Industry of Kazakhstan, told a cryptocurrency news outlet that the industry hopes to clarify with the Ministry of Energy before planning its future operations in the country. Alan’s organization brings together dozens of registered mining entities under its banner.
Kazakhstan has been experiencing power outages since the influx of miners from neighboring China, after the communist government cracked down on all cryptocurrency mining activities. The Chinese government cited environmental reasons for the ban.
Kazakhstan has huge reserves of gas and fossil fuels, and cheap electricity attracted miners, as cryptocurrency mining required large amounts of energy. The influx of miners, which increased the country’s share of the global bitcoin hash rate to more than 18%, was blamed for electricity shortages.
Mass protests caused by rising inflation and fuel costs hit Kazakhstan. The government put down the demonstrations with the help of Russian troops. The internet was shut down and this severely affected mining activities. Things calmed down and mining activities restarted only to be affected by the latest power outages.