Fun

Kazakhstan Mulls Fivefold Increase of Electricity Tax on Crypto Mining

News Feed - 2022-02-09 02:02:51

Kazakhstan Mulls Fivefold Increase of Electricity Tax on Crypto Mining


Authorities in Kazakhstan are discussing new regulations for the country’s crypto space that may lead to a serious increase in the tax burden on the mining business. Among the proposed changes is a fivefold hike of the fee miners pay per each kilowatt-hour of utilized electricity. Mining Companies in Kazakhstan Expected to Pay Much More to the State


Government officials in Kazakhstan are debating over new legislation for the cryptocurrency industry. The authors of a draft law “On Digital Assets in the Republic of Kazakhstan” have covered certain matters that concern the growing crypto mining sector, local media reported.


Quoted by Kazinform, First Deputy Minister of Finance Marat Sultangaziyev noted at a recent meeting of an interdepartmental commission that mining activities are now subject only to registration, but more rules are to come. He also emphasized that it’s very difficult to identify underground miners who consume a lot of electricity illegally. Government district in Nur-Sultan.


Kazakhstan has been trying to deal with a growing power deficit since last year when the country welcomed mining companies moving out of China after Beijing launched a crackdown on bitcoin minting operations in May. The shortages were blamed on miners and crypto farms were recently shut down across the Central Asian nation.


The upcoming amendments will make all unauthorized mining illegal. Furthermore, taxation for registered entities will be increased. Last summer, Kazakhstan introduced a surcharge of 1 tenge per kilowatt-hour of consumed electricity, which authorities now want to raise to 5 tenge per kWh ($0.01), Sultangaziyev revealed.


Kazakhstan also plans to impose a levy on mining equipment regardless of whether it’s in use or unplugged. Mining firms will be obliged to report the number and type of their coin minting devices and pay the new fees on a quarterly basis.


Hardware imports, exempted from value added tax at the moment, may also be charged with VAT. A proposal to exclude mining equipment from this exemption has been sent to the Ministry of Economy, the deputy finance minister announced.


Interruptions in power supply have already forced some mining companies to leave Kazakhstan. To deal with the issue, the country increased electricity imports from the Russian Federation last year. The government intends to revive a project to construct a nuclear power plant.


Protests over high energy prices, those of fuels like natural gas in particular, led to political turmoil affecting the crypto mining industry in Kazakhstan, which ranks among the leaders in terms of share of global bitcoin hashrate. Tags in this story Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Digital Assets, draft law, Electricity, Energy, FEE, Kazakhstan, Law, Legislation, Levy, Miners, mining, power, Regulation, Regulations, rules, surcharge, Tax, Taxation, vat


Do you think more crypto miners will leave Kazakhstan if the country increases the tax burden on the industry? Share your thoughts on the subject in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. The Miner Capitulation Number: A Look at When Bitcoin’s Price Crashed Below the Cost of Production MINING | 2 days ago Electricity Consumption Spikes in Irkutsk as More Russians Start Mining Cryptocurrency MINING | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleIndian Government ‘Constantly Monitoring’ Crypto Sector, Says Finance Minister Next articleDvision Network 2nd LAND Sale on Polygon Successfully Takes Place Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItJPMorgan Lowers Its Bitcoin Fair Price Estimate to $38K Amidst Volatility


Leading investment bank JPMorgan has changed its view on the estimate of bitcoin"s price on a long-term basis. The institution had estimated a long-term price of $146K back in November when bitcoin was over $60K. One of the most important ... read more.Russian Investors to Pass Exams Before Buying Cryptocurrencies, Draft Law Suggests Stablecoin Issuance Surged Last Year — UST Saw the Largest 12-Month Increase Crypto Ban in Russia Can Have Opposite Effect, Medvedev Warns as Opposition Mounts Against Proposal Goldman Sachs Warns Bitcoin Increasingly Vulnerable to Fed Rate Hikes as Mainstream Adoption Grows

News Feed

Martin Young4 hours agoGrayscale met with SEC to discuss spot Bitcoin ETF detailsGrayscale executives and lawyers met with the SEC to discuss a rule change to list the Grayscale Bitcoin Trust (GBTC).4933 Total views5 Tot
Coinbase cleared in lawsuit over crypto transactions
Amaka Nwaokocha10 hours agoCoinbase cleared in lawsuit over crypto transactionsThe court’s decision hinged significantly on interpreting Coinbase’s user agreements, which evolved over time.9303 Total views30 Total sh
Crypto markets need ‘disinfectant,’ says SEC chair
Turner Wright2 hours agoCrypto markets need ‘disinfectant,’ says SEC chairGary Gensler implied many market participants preferred to “whittle away at the SEC’s disclosure regime” rather than register, despite c
Bonus Army, Occupiers, 2020 Uprising: Bitcoin’s Peaceful Protest Is Pure Civil Disobedience
Bonus Army, Occupiers, 2020 Uprising: Bitcoin"s Peaceful Protest Is Pure Civil DisobedienceFor twelve days straight, American citizens and a number of countries around the world hav
Bitcoin Gold 51% Attacked – Network Loses $70,000 in Double Spends
Bitcoin Gold 51% Attacked - Network Loses $70,000 in Double Spends The Bitcoin Gold (BTG) network suffered another set of 51% attacks on January 23-24, as roughly 29 blocks were
Crypto Derivatives Powerhouse Phemex Launches Trading Contest With a Colossal $750,000 Prize Pool
Crypto Derivatives Powerhouse Phemex Launches Trading Contest With a Colossal $750,000 Prize Pool sponsored Some say trading is a game of luck; others view it as an adventure sport.
Biggest Movers: AVAX Hits Multi-Month Peak, as MATIC Jumps to 1-Week High
Biggest Movers: AVAX Hits Multi-Month Peak, as MATIC Jumps to 1-Week High Avalanche moved to a multi-month high on Jan. 24, after reports that the number of bitcoin on its network
Inverse Head And Shoulders Breakout Suggests Bitcoin Price Is Headed To $300,000
Este artículo también está disponible en español. The Bitcoin price actionis showing strong bullish signals, as a rare Inverse Head and Shoulder pattern has just broken o
South Africa Retailer Pick n Pay Now Accepts Payment in Bitcoin at 39 Outlets
South Africa Retailer Pick n Pay Now Accepts Payment in Bitcoin at 39 Outlets Pick n Pay, the South African retailer, has revealed that some of its grocery stores are now accepting
Turkey Drafting Crypto Bill to Submit to Parliament in Coming Weeks: Report
Turkey Drafting Crypto Bill to Submit to Parliament in Coming Weeks: Report Turkey is reportedly drafting crypto legislation to be submitted to parliament in the coming weeks. The
Biggest Bank in El Salvador Now Accepts Bitcoin as Payment for Financial Products
Biggest Bank in El Salvador Now Accepts Bitcoin as Payment for Financial Products Bancoagricola, the biggest bank in El Salvador, is now accepting bitcoin to pay for debts originat
Prashant Jha11 hours agoNew book reveals Binance CEO CZ rejected SBF’s $40M request for futures exchangeMichael Lewis’s new book “Going Infinite” reveals that CZ and SBF had different goals when the first collabo