Kazakhstan Earns USD 7 Million From Crypto Mining Company Taxes

Bagikan Postingan Ini

Share on whatsapp
Share on facebook
Share on telegram
Share on twitter
Share on email

Kazakhstan Earns USD 7 Million From Crypto Mining Company Taxes. The government of Kazakhstan has collected more than USD 7 million in 2023 and last year’s taxes from crypto mining companies in the country.

Read Also: After Being Sued By Coinbase, SEC Chair Affirms Crypto Regulations In The US Are Clear

The news comes amid increasing regulatory pressure limiting the industry’s access to cheap energy while increasing its tax burden.

Crypto miners in Kazakhstan were required to pay taxes and fees from January 1 last year. By 2023, they have transferred around USD 540,000 or equivalent to IDR 7.9 billion to the Kazakhstan government budget, no later than April 27.

All payments due for the first quarter must be made by May 25, the finance ministry reminded.

On February 6, 2023, President Kassym-Jomart Tokayev signed a new law “On Digital Assets in the Republic of Kazakhstan,” some of the provisions of which have not yet entered into force.

Read Also: Executes Biggest Bitcoin Scam Scheme, CEO Of African Company Fined USD 3.4 Billion

Kazakhstan Earns USD 7 Million From Crypto Mining Company Taxes. It regulates crypto-related activities, such as mining, and comes with tax code amendments. Most notably, laws limited miners’ access to cheap electricity after they were blamed for power shortages.

According to Senior Coordinator for Government Relations at the National Association of Blockchain Industry and Data Centers in Kazakhstan, Sergey Putra’s adoption of the law demonstrates Kazakhstan’s interest in the development of the crypto industry in general.

Previously, Sweden, one of the countries in Europe which is the last home for bitcoin miners, will remove tax incentives for data centers in July 2023. This has the potential to have an impact on the Swedish crypto mining industry.

Reporting from CoinDesk, Tuesday (18/4/2023), energy prices in Europe have soared in the past year in large part due to the war in Ukraine, driving out bitcoin miners in various countries.

The northernmost regions of Norway and Sweden are some of the last areas where the industry is still profitable and operating even though the players have dwindled.

Sweden was originally chosen because they offered an ideal environment for data centers and home to low-cost hydroelectric power. Sweden was initially unaffected by the energy crisis, which has seen prices rise and some miners halting their operations in 2022.

Energy prices start to normalize in 2023, but the upcoming tax is likely to stop new investment in Sweden, which currently hosts around 150 megawatts (MW) of crypto mining. The tax will increase from July this year, according to the financial budget published in November 2022.

Read Also: SEC Revises Rules, Targets Digital Asset Exchanges And DeFi

Based on last year’s average electricity price, the tax hike could bring overall energy costs up

Kazakhstan Earns USD 7 Million From Crypto Mining Company Taxes. Jaran Mellerud, senior analyst at crypto mining services company Luxor Technologies, said the most efficient mining machine to date, the MicroBT Whatsminer M30s, would be at breakeven given current market conditions.

Not only Sweden, Norway, which currently accommodates 250-300 Mega Watt of crypto mining, also increased its tax from USD 0.0086 or the equivalent of IDR 127.13 (assuming an exchange rate of IDR 14,782 per US dollar) to USD 0.015 or the equivalent of IDR 221.74 per kWh in January 2023.

Russian police and electricity suppliers have closed and dismantled crypto-illegal mining installations in Siberia and Southern Russia. In one of the cases, organizers of a mining company were suspected of stealing large amounts of electricity.

Reporting from Bitcoin.com, Monday (20/3/2023), the power company in the region announced on Friday, March 17, 2023, together with law enforcement, they seized 66 mining tools.

A resident of the village of Nadezhda, who placed crypto mining equipment in his house and connected it to the power grid, can now face criminal charges for running the underground facility.

Electrical engineers estimate it burned 954,000 kWh of electricity for more than 6 million USD 78,000 or the equivalent of IDR 1.1 billion (assuming an exchange rate of IDR 15,345 per US dollar).

A similar installation was discovered in the attic of a school in the town of Shelekhov, when police responded to reports by the local power company of unusually high electricity consumption and noise coming from the roof of the building.

Officers confiscated 25 units of mining equipment installed by the school’s electrician and a friend who is an IT specialist.

Such cases are quite common in the region of Siberia, dubbed the mining capital of Russia, where many people mine from cellars to garages.

They try to make money by using subsidized electricity in residential areas. According to a report in February 2023, more than 1,000 lawsuits have been filed against in-house crypto miners in Irkutsk.

Kazakhstan Earns USD 7 Million From Crypto Mining Company Taxes. This week, the Prosecutor’s Office of Tomsk, another Siberian oblast, announced it has approved charges in a criminal case against seven local residents who organized to illegally connect several places with crypto mining equipment to the power grid. They are accused of causing damage to the electricity supplier of around USD 310,000 or the equivalent of Rp. 4.7 billion.

Tinggalkan Komentar pada Artikel Ini

Berikan respon dan tanggapan anda

Leave a Reply

Your email address will not be published. Required fields are marked *

Tinggalkan Komentar pada Artikel Ini

Berikan respon dan tanggapan anda

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!