Kazakhstan enacts a crypto mining tax law as miners flock to the country following the crackdown on China

Kazakhstan has enacted a new tax rule for the crypto mining industry that goes into effect January 1, 2022 and is expected to generate billions in tenge. However, companies speak out against it.

Kazakhstan has followed Iran in taxing the mining industry, which is not surprising given the lucrative potential for companies with the right equipment in sufficient quantities. Local media have reported that companies are protesting the new tax rules, with many suggesting it could be a death sentence for local miners.

Electricity in Kazakhstan is relatively cheap, and this has made mining in the country more attractive. Developments in China have forced miners to consider other regions and Kazakhstan has become one of the attractive options despite the government introducing electricity surcharges. ASIC maker Canaan started shipping devices into the country at the end of June, BIT Mining made the appropriate investments in May, but now they have to go through this new tax regime – which they are reluctant to accept – through regulations.

Is cryptocurrency mining the regulators’ next target?

Authorities around the world are now paying their full attention to regulating the crypto market. The main focus for the past six months has been on crypto exchanges. South Korea has a comprehensive set of rules for exchanges and requires full license registration.

Meanwhile, Canada has posted notices of alleged non-compliance to several exchanges. Poloniex and KuCoin are among the companies examined. At the same time, Canada is another region where miners are considering moving there.

The mining industry is also an important pillar for this emerging asset class and regulators will no doubt be keeping an eye on it. It is not yet clear if this will lead to tighter restrictions, but it is very likely that countries will want to keep control of their currencies.

Annie

According to Beincrypto

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