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Kazakhstan raises taxes on crypto mining organizations

Kazakhstan is taking steps to increase taxes on cryptocurrency mining organizations in the country. According to a statement by the Minister of National Economy Alibek Kuantyrov, the scheme is to charge a tax based on the market value of the cryptocurrency mined.

Government officials noted that implementing such a plan would increase revenue. Miners operating in Kazakhstan currently pay a surcharge for electricity consumed.

Mining businesses paid more for electricity than other consumers last summer. The tax was increased at a fee of 1 Kazakh tenge (about $0.0022) per kilowatt-hour of electricity used by this energy-intensive industry. During this week’s press conference, Kuantyrov stated:

We are looking at increasing taxes for miners. Currently, we are also looking at linking the miner tax rate to the value of the cryptocurrency. If the cryptocurrency grows, it will be good for the budget.

During a government meeting in February, President Kassym-Jomart Tokayev tasked officials with increasing the tax rate on cryptocurrency mining. The head of state also ordered the nation’s financial watchdog to identify all mining facilities in the country and examine their tax and customs documents.

With electricity prices to match, Kazakhstan became a magnet for bitcoin miners last year, when China launched a nationwide attack against the industry in May. Recently, however, the country’s growing energy deficit has led the Kazakh government to begin to clamp down on the sector.