Kazakhstan Makes $1.5 Million From Crypto Mining Sector in Q1 – Mining Bitcoin News

According to official data, the government of Kazakhstan collected $1.5million from crypto miners during the first quarter. This money is made possible by a charge on electricity used to create digital currency. It was established in January.

Crypto Mining in Kazakhstan Increases Budget Revenues

The government of Kazakhstan announced that 652 million Tenge, or almost $1.5 Million, was received from crypto-mining industry workers in Kazakhstan during the first three months. This money was collected via a surcharge for electricity that mining farms in Kazakhstan use legally.

It was introduced on January 1, 2022 and is charged at 1 tenge for every kilowatt hour of electrical energy used in the mining of cryptocurrency. It is expected that miners will pay the fee no later than 20 days after the quarter ends.

The surcharge is not yet part of Kazakhstan’s tax code. Now, authorities plan to implement differentiated rates according to the cost of using power. The necessary amendments were approved by the Mazhilis lower house of parliament.

The move will increase budget receipts and limit electricity consumption to produce digital currency. China’s May 2012 crackdown on mining made the Central Asian country a key mining center.

The influx of miners has been largely blamed for the country’s growing power deficit, leading to the temporary shutdown of dozens of mining farms. Some companies have had to flee the country due to electricity shortages.

During a government meeting in February, President Kassym-Jomart Tokayev tasked officials to “multiply” the tax levy on crypto mining. He also ordered the nation’s financial watchdog to identify all mining farms in the country and check their tax and customs documents.

Kazakhstan increased the reporting and registration requirements for miners in May. This required businesses to provide a variety of information, including energy consumption of mining equipment and planned investments. During this time, the government auditors tried to close loopholes in tax that had been exploited for some miners.

Are you expecting more Kazakhstani mining companies to move away from Kazakhstan, as regulatory and tax requirements rise? Let us know your thoughts in the comment section.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.