- The President of Kazakhstan has signed a bill that raises tax rates on crypto miners.
- Tax rate will depend on the amount of electricity used by the miners.
- The government states that the tax will reduce the power load.
As per reports, the president of Kazakhstan Kassym-Jomart Tokayev, has signed a bill to impose a high tax rate on crypto miners. In a recent Tweet by Wu Blockchain, this will depend on the amount of electrical energy that the cryptocurrency miners will be using.
The tax will be charged on the average use of energy consumption, which will further be used to monitor and determine the size of the tax. Additionally, the report also states that miners will have to pay for the electricity they consume at a commercial rate higher than what households use.
This new bill was earlier proposed by the ministry of energy of Kazakhstan. Most of the crypto miners flocked to Kazakhstan after China had to crack down on the industry last year. The president has instructed the Kazakh government to come up with a full proposal and regulations on crypto mining by the end of the month.
Kazakhstan has become one of the top countries to consume a surplus amount of energy for crypto mining. Specifically for mining the most popular cryptocurrency, Bitcoin (BTC). This is according to the Cambridge Bitcoin Electricity Consumption Index.
All in all, this move is quite a big blow to the crypto mining industry in Kazakhstan. It is not yet clear how this will impact the miners and also the cryptocurrency market in general. Still, we will have to wait and see how events unfold in the coming days.
Moreover, crypto miners using renewable sources of energy will be paying a lower tax rate of 1 tenge per kWh, regardless of its cost.
