Friday, July 30, 2021

Kazakhstan president signs a new law introducing an extra levy for crypto miners.

The Takeaway:

As Kazakhstan becomes increasingly popular for cryptocurrency mining, the country has passed a new law introducing an extra levy for crypto miners.

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President of the Republic of Kazakhstan Kassym-Jomart Tokayev recently signed last a new law that imposes an additional tax fee for energy utilized by crypto miners operating in the country. The new fees will take effect starting in January 2022. According to local news agency Kursiv’s report, the new law introduces an additional fee of 1 Kazakhstan tenge ($0.00233) per kilowatt-hour used by cryptocurrency miners. 

 

Crypto miners move to Kazakhstan after the Chinese crackdown. 

According to local news agency Kursiv, the new law introduces an additional fee of 1 Kazakhstan tenge ($0.00233) per kilowatt-hour used by cryptocurrency miners. The additional tax levy is part of a series of legislative amendments to the national tax code concerning crypto miners. The Kazakh parliament passed the bill in mid-June. More and more crypto miners who were forced to shut down in China amid the crackdown are moving to Kazakhstan. Albert Rau, Chairman of the committee for economic reform and regional development, said that the main purpose of the new legislation is to regulate the crypto mining industry and “bring it out of the shadows.”

 

Kazakhstan emerges as a major destination for cryptocurrency mining.

Kazakhstan has recently emerged as a major destination for cryptocurrency mining operations as crypto miners move out of China. According to data from the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan is the fourth-largest country in the world in terms of its total Bitcoin hash rate share after China, the United States, and Russia. As reported earlier, Chinese crypto mining giants like Canaan have been relocating their operations to Kazakhstan amid a crackdown on crypto mining by Chinese authorities. Earlier, the Iranian government also announced to ban crypto mining for the next four months. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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