Kazakhstan is stabilizing, state claims as crypto miners look to the nation’s future

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The situation in Kazakhstan, which was riddled with anti-government protests in the first week of the year, is normalizing, central authorities claim. The country’s massive crypto mining industry, which faced an internet blackout in addition to a lack of electricity during the civil unrest, is now hoping the country will nonetheless remain an attractive location for miners.

President Tokayev is in control of the nation

After days of unrest, the embattled government of Kazakhstan’s President Kassym-Jomart Tokayev says the country has now stabilized. Law enforcement agencies have recaptured all administrative buildings attacked by protesters and municipal facilities are being restored, officials told the head of state at a meeting on Sunday, a statement released said.

The riots in Kazakhstan began on January 2 with demonstrations in the western Mangistau province against the rise in the price of natural gas and other fuels, which led to mass political protests in the Central Asian Republic. An unconfirmed number of people have died in the clashes and 5,800 people, including foreigners, have been arrested, official sources said.

Tokayev is said to have stressed that the security forces will take all necessary measures to fully restore public law and order in the country, Russian news agency Interfax reported. The President has ordered a special government commission to be set up to deal with the consequences of the unrest in the affected regions.

Despite challenges, crypto miners see the future in Kazakhstan

With its low, limited electricity tariffs and generally positive attitudes towards the crypto industry, Kazakhstan attracted numerous mining companies, while the massive brain drain caused by government crackdowns in China since May 2021 will contribute to the global bitcoin hashrate of over 18% blamed for a growing electricity deficit, which exceeded 7% in the first three quarters of last year.

According to the Data Center Industry and Blockchain Association of Kazakhstan (NABCD), which unites two-thirds of the country’s legal miners, the unrest has not affected the regions where official crypto mining companies operate. The recent decline in Bitcoin hashrate was caused by the temporary internet outages, the industry organization said in a press release provided by Coinstelegram, insisting that the current situation on the sector and crypto prices is only short-term. NABCD President Alan Dorjiyev commented:

At the moment the companies, members of the association, are working as usual. For our part, we are committed to ensuring that corporate social responsibility makes a positive contribution to the lives of the residents of the regions in which the data centers are located.

“From a strategic point of view, Kazakhstan will remain one of the most attractive areas for developing cryptocurrency mining,” NABCD believes. She assured that they are now maintaining the dialogue with the relevant government agencies and announced that previously imposed power supply restrictions for legal mining companies have been relaxed. The news comes after a report in December revealed that some mining companies began moving equipment out of the country due to power outages.

Tags in this story

Association, bitcoin, blockchain, crypto, crypto miner, crypto mining, crypto currencies, crypto currency, data centers, deficit, demonstrations, electricity, energy, fuels, hashrate, internet, Kazakhstan, miners, mining, failures, electricity, president, prices, Protests, riots, bottlenecks, situation, riots

Do you expect Kazakhstan to remain a major hotspot for crypto mining? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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