Kazakhstan taxes crypto miners for energy surplus

Category: Asia Regulatory

Tax code renewal will see taxes by the kilowatt-hour for crypto mining, expanding the regulatory framework

President Kassym-Jomart Tokayev has signed a new law surrounding wide-scale legislative amendments concerning crypto taxation, that will introduce an extra fee on crypto mining energy in Kazakhstan. The law sets the fee of a kilowatt-hour used for mining to one Tenge ($0.00233).

Albert Rau, Chairman of the committee for economic reform and regional development stated the objective of the actions were a more regulated environment, since mining operations will be registered with the institutions.

The republic of Kazakhstan is one of the major contributors to Bitcoin hash rate in the world. According to the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan is in fourth place following only Russia in third, US in second and with a decent heads up, China. Following the country-wide crackdowns on crypto mining in China, many Chinese operators are relocating to Kazakhstan.

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