The government of Kazakhstan has received 3.07 billion tenge (approximately $7 million) in taxes from crypto mining entities in 2022 following the implementation of a revised law regulating the financial burden of crypto mining. according to to local media coverage.
According to preliminary government data for 2023, mining fees collected by April 27 totaled 240 million tenge, worth more than $541,000 at the time of writing. This figure is far lower than his 652 million tenge (about $1.5 million) fee paid in the first quarter of 2022.
Kazakhstan ranks among the top Bitcoin mining hubs in the world. As of January 2022, the Central Asian country contributes her 13.22% of total Bitcoin hashrate, just behind the US (37.84%) and China (21.11%). show Data from the Cambridge Center for Alternative Finance.
RELATED: Can Canada Remain a Crypto Mining Hub After Manitoba Moratorium?
The country introduced a tax on digital mining on January 1, 2022, based on electricity consumption by mining entities. According to Cointelegraph, the law comes into effect amid growing public dissatisfaction with the undertaxation of the state power grid by cryptocurrency miners. The amended law was seen as a legal pathway for further adoption amidst tightening regulations around the world.
A wave of foreign miners moved to Kazakhstan during the last bull market of 2021, affecting an already difficult relationship between Kazakhstan and miners.By some estimates, over 87,849 rigs bring up In the region by November 2021, following a crackdown on mining activity by China,
Recently, the government announced plans to introduce new cryptocurrency regulations to curb tax evasion and illegal business operations. One proposal calls for government approval for issuers of secure digital assets, while another calls for selling to miners at least 75% of crypto earned through registered exchanges. is what you request. The move is expected to reduce tax evasion.
Magazine: How to control AI and incentivize humans with cryptocurrencies