Kazakhstan is preparing to increase the tax on mining

Kazakhstan is preparing to increase the tax on mining

The President of Kazakhstan insists on strict regulation of crypto-mining, inspection and licensing of all data centers and increasing taxes on cryptocurrency mining.

The energy crisis has pushed the Kazakh authorities to take tough measures against miners. 

The government is considering the possibility of increasing the tax on electricity consumed by manners by 5 times. In addition, separate taxes are planned on equipment for mining digital assets.

The President noted that despite the introduction of a tax on mining, the economic return is too small. In his opinion, mining did not live up to economic expectations. Today, cryptocurrency mining companies consume too much electricity, but do not pay taxes, are not licensed, and do not create new jobs. In addition, most mining companies are registered in other jurisdictions. 

The head of state instructed the government to inspect all mining farms, monitor the situation with energy consumption and develop a comprehensive package of regulatory measures for mining by April 1.

The President believes that only licensed miners should work in the country.

Whoever plans to work in this area must obtain a license, pay an adequate price for electricity, pay taxes, and finance green energy projects.

Kazakhstan has become second jurisdiction sheltering miners from China. However, since the fall of last year, the situation in the country has been heating up, forcing miners to think about changing their location. In the summer, a law was passed on additional taxation of mining.  In November the President ordered to develop separate legislation for the taxation of cryptocurrency mining. In January, data centers were disconnected from electricity due to resource shortages.

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