crypto miners

Abkhazia Extends Internet Restrictions for Cryptocurrency Miners

09/10/2021 by Idelto Editor

The government in Abkhazia has extended an order prohibiting access to internet sites used by cryptocurrency miners. The measure is part of a wider ban on activities related to the extraction of digital coins that also limits the use of electricity and imports of mining equipment in the breakaway Georgian republic.

Authorities in Abkhazia Confirm Ban on Websites Needed by Local Miners

Abkhazia’s telecom and media watchdog has extended internet restrictions affecting crypto mining operations in the country. According to an order issued by the State Committee for Communications, Mass Media and Digital Development, access to certain websites used by miners remains prohibited until March 31, 2022. The initial ban adopted in late December expired on June 1 this year.

As per the document issued on Oct. 6, internet providers are required to implement the technical measures needed to block the websites that allow miners to conduct their coin minting activities, Forklog reported quoting the order. However, the government agency did not list the domain names of the sites that should be restricted.

Speaking to Sputnik Radio, the chairman of the committee, Beslan Khalvash, noted that the new order he signed applies to VPN services as well. He explained that the regulator used to take action against domains and IP addresses but as some users switched to VPNs. These platforms will also be targeted in the future. The official declined to comment in detail on how the ban had been circumvented but insisted:

In the fight against mining, we are reaching a completely different level.

Khalvash emphasized that internet providers in Abkhazia are now technically prepared to restrict access to both internet sites and VPNs. The companies have already acquired the necessary equipment and software to do this. The head of the watchdog assured: “I think that tomorrow or the day after tomorrow we will start closing these VPNs.”

Abkhazia, a partially recognized de facto state in the Southern Caucasus, introduced a temporary ban on mining activities in 2018 and extended it this spring until March 31, 2022. But officials in Sukhumi have recently recognized their efforts to impose the restrictions throughout the region have largely proved unsuccessful.

Despite seizing 6,000 mining devices, authorities have failed to disrupt crypto mining, which has proved to be an alternative source of income for many in the country. In September, the government in Sukhumi acknowledged that 30,000 mining rigs remain in the hands of miners, blamed for the region’s exacerbating power shortages.

Nevertheless, Beslan Khalvash insisted that the internet restrictions imposed last year have allowed Abkhazia to save a lot of electrical energy. “The decision was justified. I am sure that the extension of that order and the closure of VPNs will also have some effect… I think that this order will also provide an opportunity to save electricity,” he stated.

That, of course, is not so sure at all. Khalvash himself admitted that there are large cryptocurrency farms in Abkhazia which can afford to avoid using the services of local internet providers. “They can take internet from the satellite,” he conceded.

Earlier this year, reports revealed that Abkhazia is holding talks with its main backer, Russia, to solve the problem with its electricity deficit. The Minister of Economy Christina Ozgan said that authorities plan to organize additional supplies from the Russian Federation. What’s more, she added that they even want to set up facilities where miners can install their equipment and legally connect to the grid.

Do you think authorities in Abkhazia will be able to curb crypto mining? Tell us in the comments section below.

Lawmakers in Kazakhstan Propose Registration for Crypto Farms, Higher Electricity Rate for Miners

07/10/2021 by Idelto Editor

Members of the parliament in Kazakhstan have proposed the establishment of a state register for cryptocurrency farms operating in the country. Alarmed by the growing consumption of energy in the sector, the lawmakers also want to charge miners a higher price for the electricity they use.

Mazhilis Members Want Miners in Kazakhstan to Register With Government, Pay More for Power

A group of deputies from the Mazhilis, the lower house of Kazakhstan’s bicameral legislature, have voiced concerns over the growing electricity demand. The parliamentarians believe the surge is due to the influx of crypto mining companies into the country, attracted by its low energy prices.

Members of the People’s Party of Kazakhstan have put forward proposals to deal with the escalating situation. According to a report by Tengrinews, the lawmakers have urged Deputy Prime Minister Roman Sklyar to create a special register for crypto farms that mint digital currencies in the country.

Zhambyl Ahmetbekov, one of the deputies, noted that the increasing number of mining entities moving to the Central Asian nation significantly affects the volume of available energy. Foreign miners consume enormous amounts of electricity but they receive their revenues abroad, bringing no benefit to Kazakhstan, he pointed out, further stating:

In this regard, it is proposed to create a legislative register to account for the so-called mining farms and introduce a special increased electricity tariff for them.

Besides the higher electricity rate, the Mazhilis members have also called for the reintroduction of differentiated tariffs for the respective time zones of the day. Thus, prices will take into account peak hours of consumption and grid loads.

The proposals come after Kazakhstan’s energy minister Magzum Mirzagaliev revealed that power consumption this year jumped by 7% in comparison with 2020. “This is a very big increase,” the official said at a press conference last week, making it clear that the government is considering restrictions on mining facilities.

The spike in demand is largely due to the growing number of data centers devoted to cryptocurrency mining, Mirzagaliev told reporters. At the same time, he stressed that Kazakhstan needs to develop its crypto mining sector and announced the country intends to build new power plants with a combined 3,000-megawatt capacity in the next five years.

Amid an ongoing crackdown on bitcoin mining and other crypto-related activities in China, the region of Central Asia has attracted many businesses from the industry with its cheap energy. However, in Kazakhstan miners compete for electricity with other industries and households, which is worrying authorities in Nur-Sultan.

In June of this year, President Kassym-Jomart Tokayev signed a law amending the country’s legislation “on taxes and other obligatory payments to the budget.” The bill, adopted in parliament earlier that month, introduced a surcharge of 1 Kazakhstani tenge (approx. $0.0023) per kilowatt-hour used by cryptocurrency miners. The new fee will be imposed on Jan. 1, 2022.

Do you think Kazakhstan will introduce restrictions for cryptocurrency miners due to its power shortages? Tell us in the comments section below.

Crypto Miners Blamed for Power Supply Deficit in Kazakhstan, Government Mulls Restrictions

03/10/2021 by Idelto Editor

Kazakhstan is facing electricity shortages and cryptocurrency mining has been singled out as the main culprit. Amid an ongoing crackdown in China, the Central Asian nation has become a magnet for crypto miners who are taking advantage of its low electricity rates.

Republic of Kazakhstan Sees 7% Increase in Electricity Demand Due to Crypto Miners

Kazakhstan plans to boost its power generating capacities in the coming years but right now the country is experiencing electricity shortages. In 2021, consumption has surged by 7% in comparison with last year, a government official revealed at a press conference.

The spike in demand is largely due to a growing number of data centers devoted to cryptocurrency mining, Energy Minister Magzum Mirzagaliev told local media this week, referring to numbers released by the grid operator, KEGOC. Stressing that “this is a very big increase,” he stated:

We need to make a number of decisions. First, we must be able to ensure that system operators have the right to limit or reduce the consumption primarily of mining data centers at a time when there may be a shortage of electricity.

Mirzagaliev’s statement was quoted by Kazakhstan Today which remarked in its report that the activities of crypto miners now do not have a significant positive impact on the socio-economic indicators. Mining consumes the cheap electricity generated in Kazakhstan, competing with the growing needs of the rest of the economy and the population. The minted cryptocurrency is usually sold elsewhere and profits are accumulated abroad.

Nevertheless, the head of the Ministry of Energy insisted that Kazakhstan needs to develop its crypto mining sector and expressed confidence that the industry will evolve. Mirzagaliev pointed out there are “very good opportunities” for that, highlighting the country’s potential to expand the use of renewable energy.

In light of the current deficit, however, the department has prepared a number of proposals on how to deal with power shortages caused by miners. These include measures to limit the electricity consumption of existing mining data centers and suspend the connecting of new crypto farms to the grid.

At the same time, the government in Nur-Sultan will focus on increasing electricity production. Minister Mirzagaliev revealed that the country intends to build power plants with a combined 3,000-megawatt capacity in the next five years. While these electric stations will operate on natural gas, Kazakhstan will also launch new facilities relying on renewable energy sources. Their share in the country’s energy mix is expected to reach 6% by 2025 and at least 15% in 2030.

A study released by the University of Cambridge this year showed that the country has seen its share in the global extraction of bitcoin increase six times in less than two years. Kazakhstan now ranks third in the world by crypto mining volume. In July, the government decided to introduce a surcharge for the electricity used by miners, but that hasn’t stopped the influx of mining companies.

Do you expect Kazakhstan to successfully deal with its power supply deficit and continue to attract cryptocurrency miners? Tell us in the comments section below.

Tehran Stock Exchange Head Resigns Over Mining Rigs Found at Organization’s Office

01/10/2021 by Idelto Editor

The director of Tehran’s Stock Exchange has resigned from his post following the discovery of cryptocurrency mining rigs in his organization’s basement. The scandal has erupted as licensed crypto miners in Iran are reportedly resuming operations amid fears of new restrictions in the winter.

Iran Stock Exchange CEO Loses Job for Illegal Crypto Mining Under His Watch

Ali Sahraei, chief executive of the Tehran Stock Exchange, has submitted his resignation after cryptocurrency mining machines were uncovered in the building occupied by the organization. Media reports of the illegal mining operation at the market’s offices were initially denied by the exchange. It only admitted to having launched an “investigation and research project” related to the liquidity outflow towards crypto assets in 2020.

According to another statement, quoted by the state-run Mashreq News, an internal inspection came across several mining devices that were allegedly operated by the stock exchange. “During the investigation, we found that the activity was not fully recorded and disclosed in the reports and by the accounts of the company,” the announcement details. As news of these findings broke on Iranian media, Ali Sahraei told ISNA news agency:

To offer an opportunity for more investigations about cryptocurrency mining at the stock exchange and to help the stability of the markets, I offered my resignation to the board of directors, which accepted it.

However, according to the Iran International news portal, the country’s official news agency, IRNA, has presented a different description of the events. Its report on the mining scandal, quoted by the English-language edition, claims Sahraei has actually been fired from his position at the Tehran Stock Exchange Market.

Iranian Authorities Allow Licensed Miners to Resume Operations, Report

The Iran Power Generation, Distribution and Transmission Company, Tavanir, which had initially denied the existence of the miners, refused to issue any subsequent comments after Ali Sahraei’s statement, the National Council of Resistance of Iran (NCRI) reported on its website. The rigs are believed to have used a lot of electricity and Tavanir has been going after energy-intensive illegal mining operations blamed for the country’s power shortages this year.

According to data released in September, the utility has seized over 216,000 mining machines from more than 5,300 underground crypto farms. During the extraordinarily hot summer, Iran faced rising electricity demand for air conditioning and had to deal with blackouts across the country. The power deficit forced authorities to cut consumption and cryptocurrency miners were targeted. Licensed mining farms were also shut down under a temporary ban imposed by former President Hassan Rouhani in May.

In August, Tavanir announced the restrictions were to be removed for authorized crypto miners on Sept. 22, in view of an expected decline in power demand during the fall. According to the report by UK-based Iran International, authorities in Tehran have now allowed licensed mining entities to resume operations. However, Iran may experience power shortages again in the cold winter months and reinstate the mining restrictions.

The Islamic Republic recognized cryptocurrency mining as a legal industrial activity in July 2019, and the government introduced a licensing regime for mining companies. Permits are issued by the Ministry of Industry, Mines, and Trade. According to Tavanir, 56 authorized crypto mining farms need a total of 400 megawatts of electricity to mint digital coins, while its claims that illegal miners consume around 2,000 megawatts daily have been rejected by the Industries Ministry.

Do you think the Tehran Stock Exchange has been involved in illegal cryptocurrency mining? Share your thoughts on the case in the comments section below.

Miami Mayor: China’s Crypto Crackdown ‘Creates Incredible Opportunity for America’ in Bitcoin Mining

30/09/2021 by Idelto Editor

Miami Mayor Says China’s Crypto Crackdown 'Creates Incredible Opportunity for America' in Bitcoin Mining

The mayor of Miami, Florida, sees China’s cryptocurrency crackdown as “the turning point” that “creates an incredible opportunity for America.” He said: “Their loss is our gain and America can and will lead the future by providing a clean power home for bitcoin miners and all who are building on/with/for bitcoin.”

Miami Mayor Sees US Benefiting From China’s Crypto Crackdown

Miami Mayor Francis Suarez, who has been trying to build his city into a bitcoin hub, sees the crypto crackdown by the Chinese government as an opportunity for his city and the U.S. He told Bloomberg:

The turning point is now. It creates an incredible opportunity for America.

Suarez commented on China’s crackdown this week: “China banning bitcoin is a massive mistake with impacts that will be felt for generations. Their loss is our gain and America can and will lead the future by providing a clean power home for bitcoin miners and all who are building on/with/for bitcoin.”

The mayor of Miami is not the only politician who sees China’s crackdown on crypto as an opportunity for the U.S. “China’s authoritarian crackdown on crypto, including bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage over China,” said Senator Pat Toomey. Congressman Patrick McHenry said, “China’s decision to restrict access presents a perfect opportunity for American leadership on cryptocurrency.”

Mayor Suarez said earlier this week that he has been actively trying to convince cryptocurrency miners that South Florida offers great opportunities for mining, including clean energy options, such as nuclear, solar, and hydroelectric.

He confirmed that he has spoken to the CEO of Florida Power & Light, Eric Silagy, about attracting crypto businesses to the area. He tweeted in May that the City of Miami “can mine bitcoin with clean nuclear energy provided by Florida Power & Light,” emphasizing:

We want to be the crypto mining capital of the world and know it can be done sustainably and incorporate solar.

Do you think that China’s crypto crackdown is an opportunity for the U.S. to lead in the area of crypto and crypto mining? Let us know in the comments section below.