María Muñoz believes that Spain can be a safe destination for investors in the cryptocurrency sector. The Ciudadanos party raised regulations on Bitcoin and other cryptocurrencies and launched a campaign to provide information and security to investors.
Spanish deputy María Muñoz of the Ciudadanos (Citizens) party believes that her country can take advantage of what is happening in Kazakhstan. She recently said that Bitcoin miners operating in Kazakhstan could do such activity in the European nation.
There has been a 12% decline in the processing power (hash rate) of Bitcoin due to the political instability Kazakhstan is going through. The government of the Asian country caused cuts in electric power and Internet services, thus affecting the cryptocurrency mining industry.
The ban by the Chinese government in mid-2021 led many Bitcoin miners to migrate to Kazakhstan. Data from Cambridge University indicates that that country hosted 18% of the Bitcoin mining processing power of the world.
The Bitcoin Mining Business Could Grow in Spain
Amid that situation, Muñoz stated that Spain could become a safe destination for Bitcoin miners coming from Kazakhstan. She said that those who invest in cryptocurrencies could make it a flexible, efficient, and secure sector in her country.
The official also sent a formal request for consultation to the Table of the Chamber of Deputies of Spain. She summarized in that document what happened in Kazakhstan due to the protests and posed questions to the government that they must answer in writing.
Muñoz asked the government of President Pedro Sánchez if they plan to take any measures to attract mining companies fleeing Kazakhstan.
The legislator also requested the government for data on the growth of Bitcoin mining in Spain. In addition, she consulted them on the evolution of the energy efficiency of that process in the European country.
Why What Happens in Kazakhstan Affects Bitcoin
The Bitcoin hash rate recently declined due to the lack of connectivity to the Internet and the electrical power system in Kazakhstan. That led many miners to disconnect from the network.
On January 7th, local media reported that the government of Kazakhstan temporarily restored the Internet service. Those working in the Bitcoin mining industry said they hoped the country would return to normal soon.
Miners stated that the protests had not affected them, but the Internet and electricity cuts had, as most are operating in rural areas. The unrest mainly concentrates in the former capital of Kazakhstan, Almaty, which today remains a trading and cultural center.
The Ciudadanos Party Raises Regulations on Bitcoin in Spain
Political organization Ciudadanos has already proposed bills related to Bitcoin on other occasions. In October, they expressed it was necessary to guarantee a rational and safe use of cryptocurrencies in Spain.
For that reason, they proposed to launch a campaign to provide information and security to investors. They said they sought to prevent fraud cases and false expectations among users.
Bitcoin is currently trading at around USD 42,201 and has accumulated a 0.8% loss in the last 24 hours. Its daily trading volume is above USD 23.69 billion, and its market capitalization is about USD 798.61 billion, according to CoinGecko.
By Alexander Salazar
