Monday, March 30, 2020

Authorities target miners: Are regulators stepping up to kill crypto?

The Takeaway:

Crypto world is dangling between the regulations from one country to another. The rise in electricity consumption for crypto mining is serving as another barricade. To cooperate or to evict the immense power usage, the authorities around the world have taken the road that can wreck cryptocurrencies. Will the crypto industry soon vanish into thin air?

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Crypto revolutions and regulations are on a lateral move. Where some days the sun shines bright on the cryptocurrencies, other days it’s another thundercloud, ready to storm the crypto world. 

 

Uzbekistan three-folds the energy charges for crypto miners

The Republic of Uzbekistan has overturned the crypto miners by announcing a 300% increase in electricity tariffs for crypto mining. Analyzing the resurgence in crypto mining amid the ascended prices of virtual coins, the Cabinet of Ministers has declared a three times hike in the actual electricity charges for all cryptocurrency mining operations within the borders of the nation. 

Will the Energy-saving resolution crash bitcoin? 

The stipulation comes as a part of the decree from President Shavkat Mirziyoyev entitled as

“On Accelerated Measures to Improve Energy Efficiency of Economic Sectors and the Social Sphere, Implement Energy Saving Technologies and Develop Renewable Energy Sources.”

The proclamation supports to motivate the rational use of electric energy and stimulate energy saving. 

Uzbekistan has always stood as a crypto-friendly nation; however, the verdict of electricity price rise can prove to be an ax outsetting havoc for the miners.  

 

The Kyrgyz Republic proposes mining taxations

Kyrgyzstan, the nation with particular diplomatic relations with Uzbekistan, has also submitted a draft law, aiming to initiate taxations on the mining functions. The Ministry of Economy of Kyrgyzstan has precisely inaugurated the outline to regulate crypto mining and increase budget revenues in the Kyrgyz Republic. Earlier, the nation, beyond the shadow of a doubt, had prohibited cryptocurrencies in 2014. The National Bank of the Kyrgyz Republic issued the statement cautioning against the use of Bitcoin and other digital currencies, stating it as an illegal move under the national law. 

 

Iran propounds license for crypto miners

Iran is sprouting as another unfavorable region for the miners. The Iranian government has steadily been cracking down on cryptocurrency mining operations from the past three months, post the pending legislation of mining regulations. As per the draft proposal from the Cabinet of Iran, the licensed and registered miners will be required to present information such as their list of business activities, the value of investments, employment status, mining equipment valuation, and the duration of the mining project. Further, the permit will need renewal every year. 

 

Iranian regulations plague the bitcoiners

The new possible laws have spread an arch of fear over the miners. The perpetual paranoia has led to a worrisome phase, running the risk of arrest, losing pieces of equipment, charges of hefty fines, and more in the daily lives of crypto miners. As estimated, over 80,000 machines have been taken over within four months. Among them, one bitcoiner lost thousands of devices while operating an industrial farm linked undeviatingly to a power plant. The shutdown caused the loss of income for 30 households. 

 

Miners relinquish possessions to pay penalties

The proposal which is not yet executed is already acting as a scare tactic. Bitcoin miners are surrendering the deed to their homes to escape the jail. The implied fines ranging from $2,000-$5,000 per machine are worth more than their annual earnings, forcing them to take the unwanted road of selling their properties. 

Earlier, Iran’s Ministry of Energy pointed the finger on cryptocurrency mining for the seven percent rise in the country’s monthly electricity consumption. 

 

What are your thoughts?

Do you think the government regulations are justified? If I say, these rules will only drive away from the crypto enthusiasts at an alarming level. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Paul Rea
Paul Rea
Paul is a graduate from the Queensland University of Technology and has a demonstrated history of working in the computer and network security industry. Apart from being a dedicated author, Paul also has an interest in graphic designing.

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