Bitcoin Miners In Kazakhstan Will Have To Pay Taxes Based On The Price Of Bitcoin.

Kazakhstan, which was once regarded a desirable destination for Chinese Bitcoin miners following the country’s ban on any BTC mining activity, now appears to be on the verge of enacting new levies that will have a detrimental influence on the business.

In a government conference on April 14, Kazakhstan Minister of National Economy Alibek Kuantyrov claimed that his team is working on a tax proposal that would link tax payments to the value of mined coins.

According to Kuantyrov’s comments, which was initially reported by ForkLog, this will aid the country’s tax collecting efforts by improving the state budget. However, this move may lead many miners to look into other countries, such as El Salvador, where the mining fee will be a flat 10% to help fund Bitcoin City’s construction and services.

“We are considering increasing the tax burden for miners, at the moment we are also considering linking the tax rate for miners to the value of the cryptocurrency. If the cryptocurrency grows, it will be good for the budget.”

The Kazakstan government initially welcomed miners with open arms, but this altered a few months later.

The country went from supplying one of the world’s cheapest mining energies to imposing a mining tax of 20 cents per kWh (in one month, the energy cost had increased by ten), claiming that miners’ energy demand had surged enormously.

However, in addition to the fee, the government has begun to shut down several mining farms, turning the so-called paradise into a nightmare for the bitcoin mining business.

Denis Rusinovich, co-founder of Cryptocurrency Mining Group (CMG), a company that has been operating in Kazakhstan since 2017, remarked that the country “went from being heroes to nothing” in a matter of seconds, criticizing the government’s regulatory policies.

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Patrick

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