In an effort to supply Kazakhstan’s miners with electricity, Russia is seeking to increase Kazakhstan’s energy needs as part of an amendment to their bilateral cooperation. The decision was made as Kazakhstani cryptocurrency miners’ demand for electricity is rising as mining activity picks up.
Russian media outlet RBC revealed the development in a recent story. According to the article, the Russian government has asked for changes to be made to the bilateral energy agreements between the two neighbors. The Russian government’s directive in this regard is reflected in this development.
The amendment aims to make sure that the energy systems of the two nations operate concurrently. Due to the latest engineering upgrade, Russia will be able to supply Kazakhstan with enough energy, specifically for its bitcoin mining operations.
Through Inter RAO, one of its largest energy holding firms, Russia aims to make this transition easier. Inter RAO is significant in this move because it is the only energy import-export contractor for Russia.
Inter RAO, a Russian company, and the Electricity Grid Operating Company have signed a business contract (KEGOC). The agreement will guarantee access to energy both through direct sales between the two businesses and elsewhere.
As a result of China’s crackdown on cryptocurrency mining operations on its soil, mining companies have fled the East Asian nation. Several mining companies flocked to Kazaksta in an effort to find a more accommodating environment.
Following an energy crisis in Kazaksta in January, the government’s energy firm disconnected roughly 200 bitcoin mining operations from the nation’s power grid. Despite being brief, this divergence demonstrated how vulnerable the nation’s energy industry is.
Kazakhstan’s Crypto Mining Industry
The majority of cryptocurrency mining companies have stayed in Kazakhstan despite this unfavorable sign, in part because of the nation’s recent relaxed attitude toward these enterprises. Kazakhstan may change its approach to regulating mining companies as it attempts to overcome its energy crisis.
Kazakhstan submitted its first draft law on cryptocurrency mining last week in an effort to regulate the sector there.
The house emphasized the importance of cryptocurrency mining to Kazakhstan’s overall economy in the measure. However, there was general agreement that Kazakhstan’s mining industry is relatively unregulated despite its significance.
Although the nation has a law that requires crypto mining companies to register, this registration process is optional. As a result, many businesses now avoid the exercise.
Because of this improper management, Kazakhstan’s energy predicament has been made worse by the indiscriminate use of its electricity for cryptocurrency mining. As a result, the house aims to suggest stronger regulations and adequate industrial oversight.
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