Kazakhstan discussed $700 million in cryptocurrency mining investments

The government of Kazakhstan has reached preliminary agreements to attract investments totaling 300 billion tenge (more than $700 million) in the cryptocurrency mining sector. About this пишет Reuters, citing a statement by Digital Development Minister Bagdat Musin.

According to the Cambridge Centre for Alternative Finance, Kazakhstan hosts 6% of global mining capacity:

Over the past year, hash rate in the country has risen by almost 335%, adds TokenInsight.

“Thirteen mining farms are already operating in Kazakhstan, four are under construction. More than 80 billion tenge (over $200 million) has been invested in the sector,” said Bagdat Musin.

Earlier, President Kassym-Jomart Tokayev поручил the government to increase investments in mining to 500 billion tenge ($1.18 billion) by 2025.

The investments to be attracted will include private, including foreign financing, and government support allocated under various digital-technology development programmes in Kazakhstan, explained ForkLog lawyer Diana Dostanova.

“At the government level, they believe that the operation of mining farms entails attracting investment, creating new jobs, technology transfer, and the utilisation of electricity surplus,” she added.

In June, Kazakhstan passed a law regulating the taxation of data centres engaged in mining. At the same time, operations with unsecured assets, such as bitcoins, are prohibited in the country.

In September, the company Enegix plans open in Kazakhstan one of the world’s largest data centres, with a capacity of 180 megawatts.

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