Social icon element need JNews Essential plugin to be activated.

Kazakhstan Collected $7 Million in Crypto Mining Taxes in 2022

Related articles

[ad_1]

The government of Kazakhstan received 3.07 billion tenge (about $7 million) in tax payments from crypto mining entities in 2022, following the implementation of an amended law regulating the tax burden of crypto -mining coins, according local media reports.

Preliminary government data for 2023 shows mining royalties collected as of April 27 amounted to 240 million tenge – worth more than $541,000 at the time of writing. The numbers are well below the 652 million tenge (~$1.5 million) in fees paid in the first quarter of 2022.

Kazakhstan ranks among the best bitcoin mining centers in the world. In January 2022, the Central Asian country contributed 13.22% of the total Bitcoin hash rate, just behind the United States (37.84%) and China (21.11%). show Cambridge Center for Alternative Finance data.

Related: Can Canada Remain a Crypto Mining Hub After Manitoba’s Moratorium?

The country introduced digital mining taxes on January 1, 2022, based on electricity consumption by mining entities. The law came into force amid growing national frustration over the undertaxed use of the national power grid by crypto miners, Cointelegraph reported. The amended legislation was also seen as a legal avenue for further adoption amid tighter regulations around the world.

A wave of foreign mining operators relocated to Kazakhstan in 2021 during the last bull market, affecting the already difficult relationship between the country and miners. Some estimates indicate that more than 87,849 platforms have been brought in the territory by November 2021 following the Chinese crackdown on mining activities.

Recently, the government announced its intention to introduce new crypto regulations to combat tax evasion and illegal business operations. One of the proposals calls for government approval for issuers of secure digital assets, while another would require miners to sell at least 75% of the crypto earned through registered exchanges. This measure should reduce tax evasion.

Magazine: How to control AIs and motivate humans with crypto