according to Report From local news media, Kazakhstan’s Minister of National Economy Alibek Kuantyrov wants to limit Bitcoin mining taxes to the price of the underlying asset. Thus, government officials expect the country to indirectly benefit from future rises in BTC prices.
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Quantilov describes the potential of this proposal as follows:
We are considering increasing the tax burden on miners, and at this time we are also considering linking the miner’s tax rate to the cost of cryptocurrencies. If cryptocurrencies grow, it will be good for your budget.
This measure seems to be part of a broader national strategy that benefits from the expanding sector. Kazakhstan’s President Kassym-Jomart Tokaev seems to have ordered a tax increase in the BTC mining industry tenfold.
After China banned Bitcoin mining altogether, large businesses were forced to find new homes. Scrambled, miners moved to the United States, some parts of Europe, and neighboring countries in China.
Many BTC miners have moved to Kazakhstan because of their cheap energy, cold weather, and hardware storage space. However, the Bitcoin mining business faces several obstacles, including political turmoil and an internet outage.
Separately Report For another local news media, Alan Dorjieve, chief of the National Association of Blockchain and Data Center Industries in Kazakhstan, revealed that taxes will increase or decrease when BTC prices reach certain thresholds. bottom. He explained:
Gradations are being considered-for example, up to $ 40,000 [the price of bitcoin] One tax, another tax over $ 40,000, etc. But that is still controversial.
As added by local new media, Kazakhstan’s BTC miners were disconnected from the country’s power network in January 2022. Miners continue to be locked out of the power grid, according to government officials.
Will Kazakhstan’s Bitcoin Miners turn around luck?
The proposed tax on Bitcoin mining operations in this country may prove unsustainable for miners. However, it could be a short-term solution that allows these entities to come back online.
The country turned into an operational nightmare, as it was a profitable investment for early BTC miners.according to WiredIn January 2022, most miners in Kazakhstan were at a loss.
Arcane Research data recorded a loss of $ 4.8 million per hour if these miners remained offline. There are about 90,000 mining facilities in the country, accounting for nearly 8% of Kazakhstan’s electricity capacity.
It’s true that the new tax could benefit the country, but it could act as the final nail in a series of events that could cause another big BTC mining outflow. It is not yet known if the market will react negatively to this event, as it did in 2021.
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As of this writing, BTC prices have been flat for the past few days at $ 40,200.
