[ad_1]
BTC block reward miners in Kazakhstan can no longer mine and store their digital assets. The new law in the Central Asian country will force miners to sell up to 75% of mined assets and drastically limit their energy supply.
Kazakh President Kassym-Jomart Tokayev signed into law a bill allowing miners to enter the national grid only when there is a surplus. The state will distribute this surplus based on the bidding process, but only to licensed miners.
Kazakhstan, however, will still allow miners to operate if they generate their own electricity or import it from a neighboring country.
The cheap power of the Central Asian country is one of the key factors behind its rise to become one of the world’s leading mining hubs. In 2022, Kazakhstan ranks only behind the United States and China in terms of BTC mining activity, according to a University of Cambridge report.
Under the new law, the state will also categorize and regulate miners under two broad categories. The first will include miners who own their mining infrastructure, including their data center and hosting. Equipment, security, even the location must also meet certain requirements. Miners who own mining equipment but rely on hosting services from other companies will be set up differently.
The new law also stipulates that miners must sell up to 75% of the BTC mined. Effective 2024, this provision is meant to give the government a better picture of the revenue miners generate for tax purposes.
Kazakhstan is also trying to regulate mining pools in one of the most comprehensive legal frameworks for BTC miners globally.
The new legislation comes at a time when the country is exploring digital tenge. Last year, it was reported that Changpeng Zhao had courted the country’s central bank to issue a CBDC on the BNB Chain. This is despite the network proving to be centralized and vulnerable to censorship just months earlier when CZ had validators shut down the network for more than eight hours.
Watch: Blockchain mining & energy innovation
https://www.youtube.com/watch?v=z07TPyXw2OE width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>
New to Bitcoins? Check out CoinGeek Bitcoins for Beginners section, the ultimate resource guide for learning more about Bitcoin—as Satoshi Nakamoto originally envisioned it—and the blockchain.
[ad_2]
Source link
