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Kazakhstan’s Bitcoin and Crypto Miners Face New Taxes

Several new taxes on Bitcoin (BTC) and crypto mining have been announced by Kazakhstan’s government. In addition to raising electricity costs, the measures will also include a crackdown on unregistered miners, a tax on mining hardware, and the imposition of VAT charges on the sale of mining-related equipment.

Earlier this week, the Minister of Digital Development Bagdat Musin slammed unlicensed crypto miners for “severely hurting” the country’s “energy grid.” And he went on to say that “illegal mining’s energy expenses” were already on track to “surpass 1 gigawatt.”

Finally, he urged those miners who hadn’t previously done so to register with the government and join a national database of approved miners.

Kazakh miners, who work in one of the world’s most popular mining regions, have had a difficult start to the winter. Data centres in their network were left without power for months due to their own fault, which was attributed to by some to them as a contributing factor in the murderous uprising that followed. Their power lines were disconnected for the second time in a week because of emergency imbalances in the grid.

After years of open courtship, they now find themselves confronted with an array of new financial obstacles, prompting some to consider leaving the country.

Government has presented a draught law titled “On Digital Assets in the Republic of Kazakhstan,” according to Kazinform. Finance Ministry Deputy Minister Marat Sultangaziev told an interdepartmental commission that elements in the bill, such as monthly inventory checks on miners, were included.

Taxes are levied on any mining equipment, whether or not it’s connected to the grid or the internet, regardless of where it is located.

That is, “the casino pays for each card table, regardless of what is going on at the table,” the Deputy Minister said, comparing it to the way that a casino is charged.

Miners will see an increase from the current base rate of US$ 0.0023 to US$ 0.012 in their per-kilowatt tax, according to the government.

The administration also intended to eliminate the present VAT exemption for mining hardware imports, according to Sultangaziev.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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