Local crypto-mining businesses in Kazakhstan, the world's third-largest market in terms of Bitcoin mining hash rate, have complained to the country's president about excessive energy prices.

Eight significant cryptocurrency mining companies, according to local media, wrote an open letter to President Kassym-Jomart Tokayev. BCD Company, TT TECH Limited, KZ Systems, AI Solutions, Green Power Solution, VerCom, and Kinur Invest are among the companies on the list.

According to the letter, the Kazakh crypto mining industry is in a "very distressful situation" because to rising energy prices for miners. The following is from the text:

“As of today, all major industry players have suspended their activities and plan to completely cease their business in the Republic of Kazakhstan by the end of the year.” 

The CEOs who signed the letter feel that the current price scenario is impeding the government's efforts to regulate the crypto business in general, and mining in particular.

According to the letter, the issue stems from the decision to hike energy taxes on crypto miners. Because of the taxes, the country has already fallen behind crypto mining leaders such as the United States, Russia, and China, and the industry is on the verge of extinction. According to the letter:

“If the government does not take urgent measures, the digital mining industry in the Republic of Kazakhstan will cease to exist.” 

On January 1, 2022, the country imposed taxes on digital mining depending on electricity use by mining businesses. The law was enacted in response to growing national dissatisfaction with crypto miners' undertaxed use of the national power infrastructure.

Sources:

https://cointelegraph.com/news/kazakh-crypto-miners-ask-president-cut-energy-prices

https://digitalbusiness.kz/2023-09-28/kompanii-mayneri-pozhalovalis-tokaevu-na-neposilnuyu-platu-za-tsifrovoy-mayning/

https://www.cnet.com/personal-finance/crypto/bitcoin-mining-how-much-electricity-it-takes-and-why-people-are-worried/#:~:text=To%20put%20that%20into%20money,an%20energy%20bill%20of%20%24173.