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Crypto Mining Firms Are Leaving Kazakhstan Due to Power Shortages, Riots, and Internet Shutdown

12.01.2022 08:26
by Nina Petrov
3 min read

Following the recent ban on crypto in their country, a significant portion of the Chinese crypto miners migrated to Kazakhstan, hoping for better trade conditions. Soon, having significant coal reserves and fast administration procedures, Kazakhstan became one of the most successful crypto mining centres in the world.

However, the situation in Kazakhstan is going for worse. Recently, the miners started facing serious problems with power shortages and rising gas prices, particularly unfavourable for crypto mining.

Source: Pexels.com

Additionally, the social environment wasn’t particularly friendly either. Because of the energy crisis and natural gas shortages, the atmosphere was tense and there have been sporadic protests across the country. Considering the high energy consumption mining activities require, Chinese miners were advised to pay attention to their personal safety in this country.

Finally, while the street riots escalated in the previous days, the Kazakh president asked for a complete shut down of the Internet connection in the country.

Citizens are already aware of how much pressure mining can put on the national energy infrastructure. Namely, during the last winter, the country’s southern regions faced severe shortages as well. The situation was so serious, that the state authorities began considering limitations for crypto mining, in order to enable an uninterrupted power supply for the households. Although it was easy to predict that the situation would be similar this winter, not much had been done to tackle the issue.

Finding themselves between angry citizens and the government unable to resolve burning issues, many crypto mining enterprises decide to leave this middle-Asian country, as their ventures are threatened by insufficient energy supply. 

Apart from the Internet close-up, energy shortages, and political instability, crypto miners are also trying to avoid the announced taxation legislation, that should come into force in 2022. According to the new bill, taxes would take a much bigger portion of mining profits than before.

Most of the miners now move their equipment to North America and the US, putting even more pressure on the already overloaded server capacity in this region. Still, the US stays the world’s #1 destination for mining, with abundant, cheap, and mostly renewable energy.

Many countries around the world experience similar problems at the moment, and several governments are forced to restrict or ban crypto mining in order to get through the winter, including Kosovo and Iran.

In the meantime, Bitcoin drops by 8%, which is the most significant drop since autumn. On the other hand, many claim that although the situation in Kazakhstan forced out of action a significant amount of miners, that didn’t affect the general Bitcoin economy, proving the overall resilience of the system.


  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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