Kazakhstan’s President Kassym-Jomart Tokaev has signed a bill to amend the national tax law to impose high tax rates on cryptocurrency miners. Taxation depends on the amount and average price of electricity used to extract digital currencies such as Bitcoin.
Kazakhstan cryptocurrency miner to pay higher taxes
President Tokaev of Kazakhstan signature A new law that introduces changes to the national law “On mandatory payments for taxes and other budgets” and a supplementary law that strengthens the implementation of tax law. The amendment introduces a differentiated tax rate for cryptocurrency mining.
The exact tax amount is determined based on the average price of electricity consumed to cast coins during a particular tax period. If a miner pays more than 25 tenge per kWh ($ 0.053), it can start at 1 Kazakhstan tenge per kilowatt hour (kWh) (about $ 0.002 at the time of writing) and reach 10 tenge with electricity charges. It was in the range of 5 to 10 tenge ($ 0.011 to $ 0.021).
Cryptocurrency firms that use electrical energy generated from renewable energy sources pay a minimum tax rate of 1 tenji per kWh, regardless of cost.Or additional fee It came into force on January 1, 2022, after Central Asian countries saw a growing power shortage throughout last year.The shortage is Inflow The number of crypto miners following China’s decision to crack down on the industry in May 2021.
According to the government, a new tax rate to reduce the load on the country’s power grid
Kazakhstan also tried to limit cryptocurrency mining limit About power supply during the cold winter shut down A coin casting facility throughout the region.measures Forced Some companies are relocating to other mining hotspots or moving most of their equipment abroad.
February, President Tokaev Ordered Relevant authorities identifying all cryptocurrency miners operating in Kazakhstan and raising taxes. April, state auditor Went after The mining business, which allegedly took advantage of tax incentives, could not have benefited.
That month, the government of Nur-Sultan publication It is preparing to increase the tax burden on miners, and one of the first proposals was to link the new rate to the value of mint cryptocurrencies. According to an official statement, the new tax law is expected to level the load on the grid and discourage the consumption of domestic electricity in the mining industry.
Do you expect more crypto miners to leave Kazakhstan after the tax hike? Share your thoughts in the comments section below.
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