Kazakhstan is working on a framework to impose an additional tax on crypto miners on behalf of the mined value of assets.
Kazakhstan is currently standing as the 2nd biggest hash rate provider to the Bitcoin network. Last year, when China imposed ban provisions on the Crypto industry, Kazakhstan welcomed crypto mining companies to continue their Bitcoin mining operations under the friendly ecosystem of Kazakhstan.
On Thursday of this week, Alibek Kuantyrov, Minister of National Economy, shared some development works by his team on the new tax policies on the crypto mining operators in Kazakhstan.
According to the Minister, tax will be imposed on behalf of the mined value of crypto assets. That means, the higher the price of Bitcoin, the higher the tax will be.
“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.”
Reportedly, the Minister stated that it will help the country to collect more revenue to push for better improvement in the state budgets. This decision of the Kazakhstan government may force these crypto mining firms to shift to those countries, where laws are better. For example, El Salvador imposes 10% to finance the construction and services.
Kazakhstan not friendly for crypto Mining companies
In the very starting, Kazakhstan was better for the crypto mining firms for their crypto mining operations but here the situation is now changing.
On one side Kazakhstan is working to introduce high-value tax systems on companies, on the other side crypto mining firms are not getting continuous electricity supply because of power outages in Kazakhstan due to electricity/power limited resources.
Probably here Kazakhstan needed to go with nuclear power energy and also toward better policies for crypto mining companies.
Read also: Russia seeks to legalize crypto payments
Don’t miss a thing, sign up for our newsletter