Kazakhstan has collected a staggering $7 million in cryptocurrency mining taxes in 2022. It appears that the regulation of mining activities has culminated in crypto miners paying millions of dollars in energy fees. The government records indicate that mining fees collected by April 27, 2023, which totaled to 240 million tenges, roughly translating to $541,000 at present. These figures are marginally lower than the 652 million tenge (~$1.5mn) in fees paid in the first quarter of 2022.
As per reports from the Cambridge Centre for Alternative Finance, Kazakhstan is one of the world’s top Bitcoin mining hubs. The country contributes 13.22% of the total Bitcoin hash rate as of January 2022, just behind the United States and China. The country launched taxes on digital mining starting January 1, 2022, based on electricity consumption by mining entities.
The law came into effect as the national power grid witnessed crypto miners undertaxed usage that was becoming a growing national concern. The amended legislation will also be considered a legal path for further adoption amid the tightening of regulations worldwide. A wave of foreign mining operators relocated to Kazakhstan during the 2021 bull market, which impacted the country’s already tricky relations with miners. It appears that more than 87,849 rigs were brought to the territory by November 2021 following China’s crackdown on mining activities.
Therefore, the government announced plans to introduce new crypto regulations to curb tax fraud and unlawful business operations. One of the proposals calls for government approval for secured digital assets issuers, while another requires miners to sell at least 75% of crypto earned via registered exchanges. The move is expected to reduce tax evasion and protect consumers.
Overall, the government’s implementation of amendments to the regulations governing cryptocurrency mining activities has fulfilled its aim of regulating the fiscal burden of mining cryptocurrencies. It has not only culminated in an increase in tax payments collected by the government but also serves as a path for further adoption of the cryptocurrency system in Kazakhstan.
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According to https://cointelegraph.com/news/kazakhstan-collected-7m-in-crypto-mining-taxes-in-2022
The material in this article is written on the basis of another article.