Kazakhstan may soon impose tax on crypto mining activities

Crypto mining has been a hot topic of discussion at this stage, and with China crashing local miners, Kazakhstan has emerged as the next big destination for crypto miners. With a massive influx of crypto miners in recent weeks, Kazakhstan is considering ending the tax-free regime for crypto miners and data centers. Lawmakers are now proposing a change in Kazakhstan's tax code to stop the uncontrolled consumption of electricity by crypto mining farms. The amendment proposes a very minimum taxation of one tenge per kilowatt hour from 1 January 2022 if the law is passed. Well, such a nominal fee entry is more symbolic than an actual fee. It also aims to kickstart the crypto management process in the country. According to the Data Center Industry and Blockchain Association, crypto miners in Kazakhstan currently consume 3.3% of the country's total energy consumption annually. "We have to adapt our legislation to reality, because the mining business in the country is actually done in a parallel reality," Albert Rau, deputy tax office, told local news broadcast Kursiv. According to local authorities' estimates, there are currently 13 crypto mining companies in Kazakhstan, accounting for 6.17% of the country's total Bitcoin mining activity. Apart from China, it competes with other giant countries such as Russia (6.29%) and the USA (7.15%). According to the Ministry of Digital Development, Innovations and Space, crypto mining activities in Kazakhstan generated $18-25 million in revenue each month. Local miners dissatisfied with crypto mining tax proposal Despite the small fees, local cryptocurrency miners in Kazakhstan are dissatisfied with the new proposal to tax their crypto operations. Alan Dorjiev, President of the Kazakhstan Blockchain Association, said: “Introducing a new additional tax in a particular industry, in this case mining,

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