- 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.
Recommended News :
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.