A tax on crypto mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. was recently implemented in Kazakhstan, but the president wants more: a fivefold increase in the amount of tax.
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Kazakhstan’s President Kassym-Jomart Tokayev called for an even higher tax on cryptocurrency. This comes just six weeks after it came into force. a new tax on industry which began on January 1, 2022. This was reported by news media in the Asian country.
According to Tokayev, the current rate of 1 Kazakh tenge (USD $0.0023) per kilowatt of energy is insignificant. For this reason, he instructed the government to increase the tax as soon as possible and submit a full proposal for the regulation of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. by April 1.
New tariff
The new tariff could reach 5 tenge per kWh (USD $0.012), and miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. may have to pay import taxes on their equipment, First Deputy Finance Minister Marat Sultangaziyev said, according to media reports in the country.
Cryptocurrency doesn’t create many jobs and consumes large amounts of electricity, and some miners pay less for electricity than the public, the president stressed today. They also don’t pay taxes on imported equipment.
It’s worth remembering that many cryptocurrencies moved to Kazakhstan after China cracked down on the industry in 2021. The Central Asian country once had a surplus of electricity, but since the influx, the national grid has been struggling to meet demand, media reports say.
The national grid operator cut power to all mines on January 21. The measure was supposed to last until the end of January, but the miners told CoinDesk that electricity has not yet been restored.
The government is also trying to eradicate “grey mining”, i.e. operations that are not properly registered and licensed.
The president instructed the Financial Supervisory Agency to identify all mining companies and verify their tax and customs records by March 19.
Around Jan. 10, crypto miners in Kazakhstan were affected by the critical situation in the country, with multiple anti-government protests, which resulted in Internet service outages . Given this situation, a Spanish congresswoman proposed that they move to the Iberian nation although his proposal was not very well received in the country.
Sources: Coindesk, archivo
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