Kazakh authorities are preparing to impose heavy energy taxes on crypto miners, a move aimed at discouraging the local population from mining cryptocurrencies. The charge will be doubled from the current 0.5 cents per kWh in the second half of the year. As part of a state-backed project to promote the use of blockchain technology, the government wants to encourage Kazakh citizens to use the technology to process payments and share information online.
Recently, the Kazakh government has been discussing a draft law to introduce a special energy fee for crypto miners. The new fees would be levied on miners regardless of whether they were located in Kazakhstan or elsewhere. The draft law aims to reduce the amount of energy consumed by cryptocurrency miners.
The central Asian country plans to introduce new energy fees for crypto miners in 2023, according to a regulatory official, who spoke on condition of anonymity.. Read more about what does mining crypto mean and let us know what you think.
With Kazakhstan becoming an increasingly popular destination for mining cryptocurrencies, the country’s president has signed a new law introducing an additional tax for cryptocurrency miners.Kazakhstan’s President Kassym-Jomart Tokayev recently signed a new law imposing an additional tax on energy used by cryptocurrencies operating in the country. The new taxes take effect in January 2023.
According to local news agency Kursiv, the new law introduces an additional tax of 1 Kazakh tenge (0.00233 USD) per kilowatt-hour used by cryptocurrency miners.
The additional tax levy is one of a series of legislative changes to the national tax code that affect miners who mine cryptocurrencies. The Kazakh parliament approved the law in mid-June.
Albert Rau, chairman of the Commission on Economic Reform and Regional Development, said the main goal of the new legislation is to regulate the crypto mining industry and bring it out of the shadows. Mr Rau is the former First Deputy Minister of Investment and Development of Kazakhstan and is said to be the author of the new legislation.
Kazakhstan has recently become a major destination for cryptocurrency mining. According to the Cambridge Bitcoin Power Index, Kazakhstan ranks fourth in the world when it comes to bitcoin’s hash rate, behind China, the United States and Russia.
Related: The Kazakh government will draw up a roadmap for the development of the crypto currency market.
Bitcoin hash rate by country. Source: Cambridge Bitcoin Energy Consumption Index
As Cointelegraph previously reported, Chinese crypto-currency mining giants like Canaan are moving their operations to Kazakhstan amid a crackdown on crypto-currency mining by Chinese authorities. China’s largest mining pool, BTC.com, also managed to move some of its miners to Kazakhstan in late June.
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