Crypto mining has been a hot topic of discussion at this stage, and with China cracking down on local miners, Kazakhstan has emerged as the next big destination for crypto miners. With a major influx of crypto miners over the last few weeks, Kazakhstan is now considering ending the tax-free regime for crypto miners and data centers.
Lawmakers are now proposing an amendment to the Tax Code of Kazakhstan to stop the uncontrolled electricity consumption by crypto mining farms. The amendment proposes a very minimal tax fee of one tenge per one kilowatt per hour starting from January 1, 2022, in case the draft law is adopted.
Well, such a nominal fee introduction is more symbolic rather than a real one. Besides, it aims in kickstarting the crypto administration process in the country. As per the Data Center Industry and Blockchain Association crypto miners in Kazakhstan currently consume 3.3% of the total energy consumption of the country every year. Speaking to local news publication Kursiv, Albert Rau, deputy of the Tax Code Department said:
“We have to adjust our legislation with real-life because as a matter of fact mining work in the country it is done in a parallel reality”.
As per the estimates of local agencies, there are currently 13 crypto mining farms in Kazakhstan and the country accounts for 6.17% of the total Bitcoin mining operations. Outside China, it competes against other giant nations like Russia (6.29%) and the USA(7.15%).
Polygon Team Working With Terra Projects to Help Them Swiftly Migrate to Polygon NetworkAltcoin News
As per the Ministry of Digital Development, Innovations, and Aerospace, crypto mining operations in Kazakhstan generated a revenue of $18-$25 million every month.
Local miners Not Happy With the Crypto Mining Tax Proposal
Despite the minor fees, local cryptocurrency miners in Kazakhstan aren’t happy with the new proposal of taxing crypto operations. Alan Dorjiev, President of Kazakhstan’s blockchain association said:
“Implementation of a new additional tax in a specific industry, in this case in the mining industry, can cause a precedent that would affect Kazakhstan in terms of investment attractiveness. Investors are used to evaluating the risk of regulation impact and would prefer more stable and reliable jurisdictions”.
Dorjiev further added that the electricity costs in Kazakhstan are now at par with that of the U.S, Norway, and Iceland. Introducing an additional tax will further discourage local miners forcing them to move out.
- Just-In: El Salvador To Discuss Bitcoin Adoption With 44 Countries
- Ethereum Founder Says A Terra Bailout Should Target These Holders
- FTX Chief Sam Bankman-Fried thinks Bitcoin Has No Future As A Payments System
- Polygon Team Working With Terra Projects to Help Them Swiftly Migrate to Polygon Network
- Where Is Terra’s (LUNA) Enormous Bitcoin Reserve?
- Binance CEO CZ Clears Air On Their Investment In Terra LUNA
- LUNA Price Jumps 1500%, Time To Buy Or Another Trap?
- Terra Founder Proposes Revival Plan But LUNA 2.0 Shall Be An Uphill Task, Here’s Why
- Just-In: Circle Mints 8.4 Billion USDC Within 7 Days, Why?
- Buy The Dip? Whales Add $1.2 Bln Bitcoin As Price Falls Below $30K
- ETH Price Analysis: Consolidation Range Soon To Launch ETH Above $2250
- Bitcoin Price Analysis: Triangle Breakout Sets BTC Rally To $32000 Mark
- LUNA Price Analysis: Opportunity to Buy Cheap or A Bull Trap?
- Decentraland Price Analysis: MANA Price Prepares For 60% Gains; Are You Buying?
- SOL Price Analysis: Is $60.0 Around The Corner On The 4-hour Chart?
- DOGE Price Analysis: Wedge Pattern Retest Phase Warns $0.08 Fallout
- Ripple Price Analysis: XRP Price Remains Pressured below $0.50; Is Selling A Good Choice?
- TRX Price Analysis: Fallout of $0.075 Support Hints 18% Drop in TRX
- Ethereum Price Forecast: Is The Dip Over Or There Is More Pain Ahead?
- MANA Price May Tumble By 42%; Here’s Why