As part of their ongoing crackdown on illegal activity in this sector, law enforcement officers from Kazakhstan busted yet another mining operation. This crypto farm is located near a railway station and it’s the latest target mining operation. Kazakhstan has struggled with power shortages.
Kazakhstan authorities seize over 100 mining rigs from an unauthorized farm
Kazakhstan is a major crypto mining country and has tried to control its operations since May 2018. This was after China launched an attack on the sector in May 2021. While the government is focusing its efforts on illegal miners, blackouts and electricity shortages have been attributed to the entire energy-hungry sector.
After recently closing down more than 100 crypto farms, including registered mining entities which, according to an official announcement, “voluntarily” halted their activities, law enforcement officials have conducted a raid on another facility minting digital currencies. According to 24 Khabar, the farm was located in the Kundyzdy railway station.
According to the country’s Transport Police Department, which carried out the search, the officers found 130 crypto mining units as well as hard drives and spare parts. According to a top-ranking officer in the police department, they have seized the mining equipment and launched a pre-trial inquiry. Quoted by the department’s press service, he noted:
The Republic of Kazakhstan does not require disclosure of any other information pursuant to Article 201 of its Criminal Procedure Code.
Kazakhstan was initially seen as a destination that would be attractive to crypto miners who were leaving China. However, due to its high-quality electricity, Kazakhstan has begun to attack mining operations over the last few weeks in an effort to reduce its increasing energy deficit. Many illegal farms were removed from the grid. Numerous registered companies also suffered power disruptions during the winter. The crackdown has been covered by the local media.
The Financial Monitoring Agency was ordered by President Kassym Jomart Tokayev to determine all entities involved in mining operations with assistance from other government agencies. This watchdog performed numerous inspections to check tax, customs and technical documentation.
Some mining companies have had to move to the United States due to political turmoil and persistent power interruptions. The National Association of Blockchain and Data Center Industry announced in February that three-quarters of authorized miners had moved out of Kazakhstan. They also warned that Kazakhstan may lose its leadership position as a bitcoin mining country in terms of computing power.
Are you positive that Kazakhstani authorities will not allow crypto miners to continue operating? Please share your thoughts in the comment section.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.