Kazakhstan Has Collected $7 Million In Taxes From Cryptocurrency Miners Since Imposing A 500% Tax

Key Points:

• After the country declared a 500% tax hike on the cryptocurrency mining industry, Kazakhstan was able to collect $7 million in additional taxes from cryptocurrency miners.
• The fact that the law was passed shows that Kazakhstan is interested in the growth of the business, as stated by Sergey Putra, Senior Coordinator for Government Relations at the National Blockchain and Data Center business Association in Kazakhstan. industry of cryptocurrencies in its whole.

The mining of cryptocurrencies has resulted in Kazakhstan’s government collecting more than $7 million in taxes in both this year and last year combined from enterprises operating in the nation.

According to the announcement made by the State Revenue Commission of the Ministry of Finance of Kazakhstan, the country’s Ministry of Finance collected taxes of 3.07 billion tenge (almost $6.9 million) in 2022 from enterprises associated to the minting of digital currency.

Since the beginning of 2018, miners of cryptocurrency in the country located in Central Asia have been required to pay various taxes and fees. By April 27 of the following year, 2023, they had transferred 240 million tenge, which was roughly $540,000, into the budget.

President Kassym-Jomart Tokayev signed a new law titled “On Digital Assets in the Republic of Kazakhstan” on February 6 of this year; however, some of the terms of that law have not yet taken effect. In particular, the law places limitations on the availability of affordable electricity for miners.

The fact that the law was passed shows that this country is interested in the growth of the business, as stated by Sergey Putra, Senior Coordinator for Government Relations at the National Blockchain and Data Center business Association in Kazakhstan. industry of cryptocurrencies in its whole.

Since China began cracking down on cryptocurrency mining in the spring of 2021, Kazakhstan has emerged as a prominent center for the industry. Because it offers subsidized electricity to miners, Kazakhstan was ranked third in the world in terms of its average hash rate during the month of January 2022.

However, according to researcher Jaran Mellerud, Kazakhstan’s market share has fallen from a high of 18% in October 2021 to just 4% in May 2023. This decline occurred during the years 2021 and 2023.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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