[2023-02-11] Kazakhstan Law Limiting Crypto Miners’ Consumption of Electricity..

[chmod755]

A new law expanding the regulatory framework for cryptocurrency miners while restricting their access to low-cost electricity has entered into force in Kazakhstan. The legislation introduces a licensing regime for mining with two different categories of licenses that companies will have to renew periodically.

Source: https://news.bitcoin.com/kazakhstan-law-limiting-crypto-miners-consumption-of-electricity-enters-into-force/

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[SFR10]

So the law is "once again" getting tighter for miners! I feel bad for those who relocated their mining operations to Kazakhstan ^{[especially for those who came from China]}... The way I see it, If they continue down that path, this particular sector will cease to exist in a couple of years' time ^{[except for those who are using renewable energy]}.

[mindrust]

Bullish. This will raise the cost of mining bitcoin and probably will drive the prices upwards since the miners will have to sell from a higher price to cover their costs. On the other hand Kazakhstan is a very poor country. If every crypto miner makes a home there and use their electricity, that will drive the electricity prices up and the Kazakhs will have to deal with that. I guess it is time for the miners to move to the next cheapest country.

[bbc.reporter]

@mindrust. I disagree. Higher expenses on mining bitcoin will not cause the price of bitcoin to pump. What it will certainly do is cause the miners in Kazakhstan is sell their bitcoin now to pay for the expenses to transfer their mining equipment somewhere else, very much similar to the cryptomining ban in China.

However, this will be bullish for the other miners outside of Kazakhstan because mining difficulty will fall and this will give them a good chance to increase their share of the total hashrate.