Spain could attract Bitcoin miners from Kazakhstan, suggests MP – CVBJ

Highlights:

MEP María Muñoz believes Spain can be a “safe destination” for investors.

Citizens Party is raising regulations on bitcoin and cryptocurrencies.

Member of Parliament María Muñoz of the Citizens’ Party of Spain considers that her country is able to take advantage of what is happening with the Bitcoin miners who operate in Kazakhstan to attract them to carry on the business in the European nation.

Bitcoin’s processing power or hash rate has dropped 12%, due to political instability in the Asian country. The government of Kazakhstan caused power and internet blackouts, which affected the cryptocurrency mining industry.

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

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

In addition, he addressed a formal request for questions to the Bureau of the Chamber of Deputies of Spain. In the document, he recounts what happened in Kazakhstan following the protests and poses several questions to the Spanish government, which, according to the regulations, he must answer in writing.

The legislator asks the government of President Pedro Sánchez if it plans to take measures to attract mining companies to Spain 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 how the energy efficiency of this process is changing in that European country.

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

What is happening in Kazakhstan and why is it affecting bitcoin?

As CriptoNoticias explained a few days ago, the lack of connectivity to the internet and the electricity system in Kazakhstan has caused the Bitcoin hash rate to decrease. It is because many miners have disconnected from the network.

Today, January 7, they reported that the internet has been temporarily restored. “The industry expects the country to return to normal next Monday,” reporter Colin Wu said.

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The minors assure that they were not directly affected by the demonstrations (yes by the Internet and the power cuts), since most are located in non-urban areas. The unrest is mainly concentrated in the region of Almaty, the former capital of Kazakhstan.

Citizens’ Party and bitcoin regulations in Spain

This 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 promoting an information campaign related to cryptocurrencies to offer, according to them, more information and security to investors.

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