The government of Kazakhstan is discussing a new tax regime in which it proposes to increase tax rates on Bitcoin mining, while planning to link the new rates to the cryptocurrency's market price.
Kazakhstan, once considered a haven for Bitcoin mining, is currently discussing a new tax regime for the crypto industry. The proposal is aimed at Bitcoin miners and will prove, for many, to be a serious obstacle to continuing to develop this activity.
One of the main points in the new tax regime of Kazakhstan is to increase the tax rate on Bitcoin miners and other cryptocurrencies, in addition to linking the new tax rates to the price of these digital assets.
In this way, with the revaluation and price increase expected in cryptoassets in the future, miners will also have to assume higher taxes, which will generate more tax revenue for the Asian nation.
Kazakhstan's new tax plan will also require miners to cryptocurrencies, take on new taxes and tariffs for importing their Bitcoin ASIC mining equipment or graphics cards, in the case of mining other cryptoassets, into the country.
Currently, there is a VAT exemption on the purchase of crypto mining equipment in Kazakhstan, but the government plans to remove it with its new tax regime.
According to the local media Tengrinews, the Minister of National Economy of Kazakhstan, Alibek Kuantyrov, who reported Regarding the new tax proposal, he said that the increase in the tax rate for Bitcoin and other cryptocurrency miners and its link to the price of crypto assets on the market will be positive for the Kazakh economy. “If cryptocurrency grows, it will be good for the budget”, Kuantyrov said.
It may interest you: Kazakhstan is no longer the paradise it used to be for Bitcoin miners
Kazakhstan's dramatic turnaround for Bitcoin miners
After establishing a world leadership position in Bitcoin mining, as the second country with the highest concentration of hash rate On the internet, Kazakhstan is no longer an ideal destination for miners of this cryptocurrency.
In October last year, Cryptocurrency Mining Group co-founder Dennis Rusinovich criticized the power outages and various mining farm closures being carried out by the country’s government through its authorities. Rusinovich said on his Twitter account that these actions had led Kazakhstan to go from “hero” to “zero” within the crypto industry.
Government officials in Kazakhstan have begun blaming Bitcoin and other crypto miners for the country’s current energy crisis, cracking down on crypto mining facilities that do not have the necessary permits to do so.
As reported by Bit2Me News, by March of this year, Kazakh authorities reported that they had dismantled 55 illegal Bitcoin mining farms and that another 51 had voluntarily ceased operations due to pressure and uncertainty.
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