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Kazakhstan wants to raise taxes for miners by 500%

Kazakhstan wants to raise taxes for miners by 500%

The Kazakh government has decided to impose stricter taxes on miners. Increased taxes on electricity and monthly payments are among the projects under consideration. 

Why is it so important?

  • The introduction of new taxes may reduce the profitability of miners in Kazakhstan
  • This may lead to migration of miners to the U.S., Russia, and other countries

According to The Block, the most likely change will be increased electricity prices for miners. Right now, they pay $0.002, but soon they will be charged $0.012. Another project is monthly payments on equipment, regardless of whether miners make a profit or not. A similar equipment tax was already imposed on casinos.

Furthermore, Bagdat Musin, Kazakhstan’s minister of digital development, posted on his personal Facebook to attack unregistered “gray” miners for consuming 1 gigawatt of the country’s electricity. “Gray miners are severely damaging our energy system. Now the energy costs of illegal mining are estimated to exceed 1 gigawatt,” wrote Musin. 

Gray miners are defined as those who have not officially registered their mining equipment in a special register of the Ministry. 

Recall that Kazakhstan ranks third in the world in terms of total mining capacity. However, at the beginning of the year, it dropped due to the Internet shutdown during the protests. After that, some miners started to move their equipment to other countries.  

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