Spain Could Attract Bitcoin Miners From Kazakhstan, MP Suggests

Key facts:
  • Deputy María Muñoz believes that Spain can be a “safe destination” for investors.

  • Citizens Party raises regulations on bitcoin and cryptocurrencies.

The deputy María Muñoz of the Citizens party, of Spain, considers that her country is in a position to take advantage of what happens with the Bitcoin miners that operate in Kazakhstan to attract them to carry out the activity in the European nation.

The processing power or hash rate of Bitcoin has fallen by 12%, due to the political instability that the Asian country is experiencing. The Government of Kazakhstan caused electricity and internet outages, which affected the cryptocurrency mining industry.

Following the ban on Bitcoin miners in China in mid-2021, many migrated to Kazakhstan. That country came to host 18% of the processing power of Bitcoin mining, according to data from the University of Cambridge.

Taking all that into account, Muñoz posted on Twitter that Spain can position itself as a “safe destination for investments in cryptocurrencies to develop a flexible, efficient and safe sector”.

In addition, he sent a formal request for questions to the Bureau of the Chamber of Deputies of Spain. In the document, he recounts what happened in Kazakhstan as a result of the protests and poses several questions to the Spanish Government, which, according to the regulations, must be answered in writing.

The legislator asks the government of President Pedro Sánchez if it plans to take any measure to attract mining companies to Spanish territory that could “flee” from Kazakhstan.

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He also asked what data the Government has on the growth of Bitcoin mining in Spain and on the evolution of the energy efficiency of said process in that European country.

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Deputy María Muñoz submitted to the Congress of Deputies the request to open the doors to Bitcoin miners.

What is happening in Kazakhstan and why does it affect bitcoin?

As CriptoNoticias explained days ago, the lack of connectivity to the Internet and the electrical system in Kazakhstan caused a decrease in the Bitcoin hash rate. This is because many miners disconnected from the network.

Today, January 7, they reported that the Internet was temporarily restored. “The industry expects the country to return to normal next Monday,” Indian journalist Colin Wu.

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The miners assure that they have not been directly affected by the protests (yes by the Internet and electricity cuts), since most are located in non-urban areas. The unrest is mainly concentrated in the Almaty area, the former capital of Kazakhstan.

Citizens Party and bitcoin regulations in Spain

It is not the first time that the political organization Ciudadanos has presented proposals related to bitcoin.

Last October he also made a proposal to regulate bitcoin and other crypto assets in Spain. As well as to promote an information campaign related to cryptocurrencies to offer – according to them – more information and security to investors.

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Spain Could Attract Bitcoin Miners From Kazakhstan, MP Suggests

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