Kazakhstan Police Shut Down Another Crypto Farm Amid Ongoing Crackdown on Mining

Since last year Kazakhstan has been a hotspot for crypto mining. It is trying to restrict operations in its crypto mining industry, which grew rapidly after China launched an attack on the sector in May 2021. While the government has focused its efforts on illegal miners, the entire energy-hungry sector has been blamed for electricity shortages and blackouts.

After shutting down over 100 crypto farms, including registered miners who, according to an announcement, had ‘voluntarily’ stopped their activities, law enforcement officers raided another facility that mints digital currencies. 24 Khabar reported that the farm was located in a room at the Kundyzdy railway Station.

The country’s Transport Police Department conducted the search and found 130 crypto mining machines, hard drives, spare parts, and other items. A high-ranking official in police said that the equipment was seized and that a pre-trial investigation had been initiated. He was quoted by the department’s media service.

Other information, as per Article 201 of Criminal Procedure Code of Republic of Kazakhstan, is not subjected to disclosure.

Although initially a promising destination for crypto-miners leaving China, Kazakhstan’s capped electricity rates have made it a more difficult place to mine. In recent weeks, Kazakhstan began to attack mining operations in an effort to address its energy shortage. Many illegal farms were disconnected from power grids and many registered businesses were affected by power outages during the winter months. The crackdown was covered by local media.

In February, President Kassym Jomart Tokayev directed Financial Monitoring Agency to identify all relevant mining entities using the assistance of other government agencies. Numerous inspections were conducted by the watchdog to verify tax, customs and technical documentation.

In January, political turmoil and persistent power supply interruptions have already caused some mining firms to relocate to countries like the U.S. The National Association of Blockchain and Data Center Industry announced in February that some authorized miners had moved a third of their equipment from Kazakhstan and warned that Kazakhstan may lose its position as the world’s largest bitcoin network.