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The government of Kazakhstan is shutting down crypto mining facilities across the country, according to the country’s Financial Monitoring Agency. Dozens of crypto mining facilities have reported to have ceased operations, either by force or voluntarily.
Following the announcement by the Financial Monitoring Agency, there appears to be a mass shut down of crypto mining businesses across Kazakhstan, according to reports by the country’s authorities.
Dozens of Kazakhstan’s Facilities Forced to Shut Down
On Mar. 15, the country’s Financial Monitoring Agency gave reports that dozens of crypto mining facilities have ceased operations and are being shut down within its border. Additionally, it added that some of these facilities were willing to cease operations while others had to be forced.
According to the reports, 55 mining facilities have ceased operations voluntarily as they go under government inspections. These facilities were also reported to have disassembled and disposed of all of their equipment – with government agencies tasked with preventing this equipment from entering circulation.
The reports also cited that the FMA had to shut down 51 illegal mining facilities forcibly. These illegal facilities were either operating without reporting to the government, using illegal energy connections, evading taxes and customs, or operating in improper particular economic areas.
Following the clampdown of these illegal operations, the authority has filed 25 criminal cases and seized 67,000 pieces of mining equipment valued at 100 billion tenges ($194 million).
Some of these illegally operated mining facilities were linked to various entrepreneurs and their companies. One illegal facility was linked to Kazakhstan’s 17th wealthiest businessman, Kairat Itemgenov, while another was associated with former government official Tiegen Matkenov.