Bitcoin Miners in Kazakhstan To Pay Taxes Correlated to BTC Price

After China’s crackdown on Bitcoin mining, Kazakhstan was once considered a desirable country for Chinese Bitcoin miners. However, Kazakhstan seems now to be preparing to create new taxes that will negatively affect the industry.

Alibek Kuantyrov (Minister of National Economy), stated in a briefing to the government that his team was working on a tax plan which would link tax payments and the valuation of the mined coins.

Kuantyrov’s statement was first reported by ForkLog. It states that this will improve the country’s tax collection and translate into a better state budget. This decision could lead to many miners exploring other countries such as El Salvador where the mining tax is a flat 10% to fund the construction and services at Bitcoin City.

“We are looking at increasing the tax burden on miners. At the moment, we are also thinking about linking the tax rate for miners with the value of cryptocurrency. It will be beneficial for the budget if the cryptocurrency grows.”

Crypto miners find Kazakhstan less attractive

Initially, the Kazakstan government was open to miners; however, it changed its stance a few months later.

The country has gone from being one of the most affordable energy sources for mining to introducing an energy tax of 20c per kWh. This was in response to the fact that miners have increased their energy demands exponentially.

The government started closing down mining farms and imposing a tax. This turned the “paradise” into a problem for the bitcoin mining industry.

Denis Rusinovich (co-founder of Cryptocurrency Mining Group, a company that has been operating in Kazakhstan since 2017), said that the country had “gone from being heroes, to nothing” and condemned the government’s regulatory actions.

6 Kazakhstan #bitcoinmining trying to retaliate position of going from “hero to zero”. The community has made a huge step forward in setting up new sectors in Kazakhstan and building a strong global position in bitcoin mining. >

— Denis Rusinovich (@DenisRusinovich) October 22, 2021

Bitcoin Bullish? Increase Taxes

Alan Dorjiyev (Director of Kazakhstan’s National Association of Blockchain and Data Center Industry) stated to a local news outlet, “The government is considering an energy tax levied in correlation with the price of Bitcoin.”

“A gradation is being looked at: For example, a $40,000 (bitcoin price) tax or a $40,000 tax on top of the other tax. However, this is still a matter of discussion.

Conducting mining activities in the country at the moment could prove counterproductive. This is because there could be an increase in power tariff or repeated power outages in many areas since January. Dorjiyev also claims that these power outages have not been completely restored.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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