Tuesday, April 23, 2024

Kazakhstan set to introduce new tax system for Bitcoin miners

Once regarded as a crypto-friendly nation with abundant energy, Kazakhstan’s government is set on deterring crypto miners. The Kazakh government is working on increasing taxes on crypto mining. The new tax rate will be linked to the value of the minted digital currency.

Alibek Kuantyrov, the Minister of National Economy, said by doing this the government will boost budget revenues. He highlighted that the government is developing a tax plan that would tie tax payments to the value of minted tokens. Kuantyrov said this will help Kazakhstan financially in tax revenue collection and boost the national budget. The minister revealed that the government is considering increasing the tax burden for miners. The tax rate for miners will likely be linked to the value of the cryptocurrency. Kuantyrov pointed out that if the cryptocurrency grows, it will be good for Kazakhstan’s budget.

Crypto miners in Kazakhstan will see their taxes increase with the value of the cryptocurrencies they mine. When China had implemented a blanket ban on crypto, miners turned to Kazakhstan. The Central Asian country embraced crypto miners with open arms. However, the friendly attitude seems to have taken a drastic turn. Earlier, it was seen as one of the cheapest energy sources in the world for mining. But now, Kazakhstan charges a 20 cent per KWh mining tax in one month. Energy costs have increased. This suggests that miner energy consumption dramatically increased.

Sources say the high power usage of mining farms is a driving force behind the government’s push for tax. Furthermore, Kazakhstan’s infrastructure is struggling to keep pace with the increasing demand for electricity and data centers.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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