Kazakhstan Is Stabilizing, Government Claims as Crypto Miners Look to Future in Country – Mining Bitcoin News

Central authorities say that the situation in Kazakhstan is improving after it was hit hard by protests during the first week. The country’s massive crypto mining industry, which faced an internet blackout during civil unrest on top of power shortages, now hopes that the country will nevertheless remain an attractive location for miners.

President Tokayev Has Nation Under Control

After days of turmoil, the embattled administration of Kazakhstan’s President Kassym-Jomart Tokayev says it now has the country stabilized. According to a statement, law enforcement agencies captured all the buildings in administrative that were damaged by protesters. The communal services have been restored. Officials informed President Kassym-Jomart Tokayev during Sunday’s meeting.

January 2nd saw protests by western Mangistau residents against increasing prices of natural and alternative fuels. These demonstrations turned into massive political protests, which engulfed Kazakhstan. Official sources said that 5800 people, some of them foreigners, were arrested and that a number of victims have not been confirmed.

Russian news agency Interfax reports that Tokayev stated emphatically that security forces would take every necessary step to bring back public order and law in the country. President Putin has ordered the establishment of a commission to investigate the effects of the violence in affected areas.

Crypto miners see the future in Kazakhstan despite all its challenges

Kazakhstan, with its low and capped electricity rates, as well as its positive attitude toward the crypto industry, attracted many companies to mine there amid the mass exodus in China from the country’s crackdown. However, the influx of miners, which increased the country’s share in the global bitcoin hashrate by over 18%, has been blamed for a growing deficit of electricity, exceeding 7% in the first three quarters of last year.

According to the Data Center Industry and Blockchain Association of Kazakhstan (“NABCD”), which unites nearly two thirds of Kazakhstan’s legal miners, the protests have not affected regions in Kazakhstan where they are legally operating. According to Coinstelegram’s press release, the latest decrease in bitcoin havehrate was due to the temporary internet downtime. The industry association explained that this is only a temporary problem and stressed that it will not affect crypto prices or the sector in any way. NABCD President Alan Dorjiyev commented:

The Association members are currently working as normal. We, on our part are striving to make sure that social responsibility in business contributes positively to the lives and communities where data centers are located.

“In a strategic perspective, Kazakhstan will remain one of the most attractive areas for the development of cryptocurrency mining,” the NABCD believes. It assures it’s now maintaining dialogue with relevant government authorities and announced that previously imposed restrictions on electricity supply have been relaxed for legal mining entities. This news follows a December report that revealed some mining companies had begun to evacuate the country because of power shortages.

Are you optimistic that Kazakhstan will remain a key crypto-mining hotspot? Leave your comments below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.