Kazakhstan's bitcoin mining industry brings millions of tax revenues

 

Kazakhstan's bitcoin :

mining industry brings millions of tax revenues

In 2022, cryptocurrency mining companies paid more than $7 million in taxes to the Kazakh government.

This is thanks to the amended law regulating

the financial burden of cryptocurrency mining.

However :

1. fees collected in 2023
2. by April 27 were significantly lower than
3. the previous year, totalling only $ 541 thousand.

Kazakhstan is one of the world's largest bitcoin mining centres

The country contributed 13.22% of the total bitcoin retail rate as of January 2022.

The introduction of taxes on digital mining

Based on electricity consumption

by mining entities on 1 January 2022 in response to growing frustration with the unlimited use of encrypted miners for the national power grid.

The action was also considered a legitimate way to

increased adoption despite stricter rules everywhere.

However :

• this has affected already difficult relations between the state and miners

• as a wave of foreign mining operators moved to

• Kazakhstan during the 2021 bull market.

New tax regulations were necessary for

Kazakhstan to solidify its place in the global crypto industry

Revenues from mining fees have allowed the Government to invest in various initiatives, including renewable energy projects.

Kazakhstan's approach to cryptocurrencies was cautious but optimistic.

While the State welcomed crypto miners :

It had also announced plans to introduce new cryptocurrency regulations to reduce tax fraud and illegal business operations.

One suggestion is to get the government's approval for secured digital asset exporters

The alternative mandates that miners sell at least 75%

of cryptocurrencies earned via registered exchanges.

These new regulations are expected to

reduce tax evasion and enhance transparency in the crypto industry.

• The Government is also exploring

• potential for establishing a national digital currency

• Generate additional revenue and stimulate economic growth.

The Kazakh government's proactive approach to cryptocurrencies is a positive sign of the future of industry in the country.