Soon the number of crypto mining operations in the United States will reduce, as US authorities are planning to impose a very high tax on crypto mining operations.
Crypto mining is an important part of the crypto transactions under decentralised medium. As of 2021, the USA comes first with 35,4%, and the Kazakhstan share reaches 18,1%. Before mid of 2021, China was responsible for 75%+ crypto mining activities but a blanket ban on the crypto sector resulted in a very big pressure on the crypto mining firms to shift their operations to crypto-friendly jurisdictions.
The US Treasury Department proposed a 30% tax on the electricity or power used by the crypto mining companies. This tax system will come into effect in phases i.e 10% increment in the excise tax per year. Here 30% tax will also vary on behalf of the type of energy source use by those crypto mining firms.
The proposed excise tax document read:
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“Increasing consumption attributable to the growth of digital asset mining has negative environmental effects and can have environmental justice implications as well as increase energy prices for those that share an electricity grid with digital asset miners.”
Here this move will surely impact the business of several crypto mining companies in the US because these companies will also be forced to report their electricity consumption report, along with high excise tax.
A few reports noted that Crypto mining companies will shift their operations outside the US soon because such high excise tax will result in very less profit for them & even in some cases they may face huge losses.
Crypto China ban & Kazakhstan
After China’s blanket ban on crypto in 2021, all the crypto-linked companies suspended their services and shifted to a friendly jurisdiction.
In 2021, Kazakhstan took the advantage to create an opportunity for the country to generate revenue from the crypto mining sector.
In the present time, Kazakhstan is the second biggest hub, in which crypto miners are operating their business with confidence.
In 2022, Few crypto-mining companies reported that they are facing a huge struggle because of the discontinuous electricity supply. A few reports confirmed that Kazakhstan’s energy department is exploring ways to generate electricity with the help of nuclear power plants to fulfil the needs of the country.
Read also: Huobi Token (HT) recovering following the sudden crash by 93%
US policymakers planning 30% Excise Tax on Bitcoin miners
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