According to local news sources, the government of Kazakhstan collected 3.07 billion tenges (about $7 million) in tax payments from crypto mining businesses in 2022, following the introduction of a revised regulation controlling the fiscal cost of mining cryptocurrency.
Kazakhstan Generated $541K in Taxes as of April 27
As per initial official figures for 2023, mining revenue generated through April 27 reached 240 million tenges, or over $541,000. This seems to be quite lesser when compared to the fees collected in the opening quarter of 2022 totaled 652 million tenge or about $1.5 million.
Kazakhstan is one of the world’s top Bitcoin mining locations. According to Cambridge Centre for Alternative Finance data, the Central Asian country provided 13.22% of the overall Bitcoin hash rate for January 2022, trailing only the United States (37.84%) and China (21.11%).
Flocking of Crypto Miners in the Country
During the 2021 bull market, a surge of multinational mining operators migrated to Kazakhstan, complicating already tense ties between the country and miners. The government has announced plans to implement new crypto legislation in order to combat tax evasion and illegal commercial activity.
New Crypto Mining Law in Kazakhstan
On January 1, 2022, the nation imposed fees on digital mining depending on power use by mining businesses. The legislation went into force in response to rising national dissatisfaction with crypto miners’ undertaxed use of the nation’s electrical grid.
Recently, the government has announced plans to implement new crypto legislation in order to combat tax evasion and illegal commercial activity. Kazakhstan’s President Kassym-Jomart Tokayev approved a new crypto rule in February to tackle illegal mining activities in the area.
New Rules for Crypto Miners Starting 2024
In addition, Kazakhstan adopted a new law last year requiring miners to form authorized organizations that can operate after gaining clearance from the proper financial regulators.
Furthermore, these crypto miners were slated to keep paying taxes in accordance with the region’s taxation regulations. Furthermore, beginning in 2024, miners would be compelled to exchange up to 75% of their income on local crypto platforms under this rule.