Russia Will Power Kazakhstan’s Crypto Miners – Bitcoin News

Russia is preparing to provide Kazakhstan with the additional energy it needs to operate crypto mining farms in the Central Asian country. The new arrangement will allow miners in Kazakhstan to buy electricity directly from Russian power generation and distribution giant Inter RAO.

Kazakh miners source energy from Russian Federation

Crypto mining businesses operating in Kazakhstan will be able to rely on electricity produced in neighboring Russia to power their energy-hungry hardware. To this end, the two partner countries will revise a bilateral agreement to manage the coordinated operation of their energy systems.

The Russian business information portal RBC’s crypto news page has announced that the Moscow government has ordered the necessary changes and started preparations to organize electricity supply for Kazakhstan’s crypto mining industry.

Under the new arrangement, Inter RAO, which has a monopoly on the import and export of Russian electricity, will be able to sell it in Kazakhstan under commercial contracts signed directly with mining companies working there.

After the Chinese government cracked down on the industry last year, Kazakhstan has attracted mining companies with its low subsidized electricity bills. The subsequent surge in consumption was blamed on power shortages and multiple failures in the country’s aging energy infrastructure. In January, Kazakh authorities temporarily closed about 200 mining facilities.

Russian state-owned energy giant debuts considering Additional supply was provided to Kazakhstan last fall, when the country expected its electricity deficit to hit 600 megawatts as demand in the cold winter months came after consumption in the first nine months of 2021 approached 83 billion kilowatt-hours (kWh). Increase.

At the time, Inter RAO criticized Kazakhstan’s tariff caps, which the Russian holding company said had resulted in a lack of funds to invest in modernizing and upgrading the country’s power generation capacity and distribution network.In addition, Kazakhstan previously restricted electricity imports unless the national grid operator JD.com Shortage risks are identified.

Lawmakers in Nur-Sultan recently introduced a bill aimed at reducing what they call “the uncontrolled use of electricity by ‘grey’ miners”. The new legislation aims to preserve the opportunity to mint digital coins for mining companies registered with the Astana International Financial Centre (AIFC). If the law is passed, foreign entities can only mine under contracts with domestic licensed data centers.

tags in this story

protocol, cryptocurrency, crypto miner, crypto mining, cryptocurrency, cryptocurrency, Electricity, electricity supply, vitality, Export, import, International Rao, Kazakh, Kazakhstan, JD.com, miner, mining, strength, low power, Russia, Russian, shortage, supply

Do you think Kazakhstan will be able to solve the power shortage and ensure that its crypto mining industry has enough electricity? Share your thoughts on the topic in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.




Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or invitation to offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.



Source link