Crypto Miners Face Stricter Oversight in Kazakhstan as President Tokayev Orders Electricity Tax Hike: Report

All crypto mining farms will have to disclose themselves with relevant paperworks in Kazakhstan by March 19.

Crypto Miners Face Stricter Oversight in Kazakhstan as President Tokayev Orders Electricity Tax Hike: Report

Photo Credit: Facebook/ Embassy of Kazakhstan in the United Kingdom

Crypto mining refers to the process of generating a cryptocurrency using advanced computers

Highlights
  • Kazakhstan will charge five times more tax on power
  • Crypto miners will have to pay import tax for equipment
  • Crypto mining centres must be licenced in Kazakhstan

Cryptocurrency miners operating in Kazakhstan will reportedly be paying a hiked electricity surcharge. Kassym-Jomart Tokayev, the President of the central Asian country has reportedly instructed authorities to increase the tax on electricity for crypto-mining outfits. Identification of all crypto-mining enterprises and facilities has also been ordered to eradicate unlawful crypto-mining activities. Kazakhstan aims to ensure that all facilities must be licensed and taxed accordingly. Miners generate cryptocurrencies by solving advanced algorithms on advanced computers.

Last year, Kazakhstan added $0.0023 (roughly Rs. 0.17) to the electricity tax. This time however, the country is hiking the cost five times, local media Tengrin News reported.

“The current rate is negligible. I instruct the government to work out a multiple increase of this tax as soon as possible,” the report quoted Tokayev as saying.

Crypto miners will also have to pay import charges for their equipment.

The President of Kazakhstan has called for a full proposal on crypto-mining regulations by April 1 from relevant government bodies.

Last year, Kazakhstan became the world's second-largest centre for Bitcoin mining after the United States, according to the Cambridge Centre for Alternative Finance, after major hub China clamped down on cryptocurrency mining activity last September.

Since the process of crypto mining is power intensive, it has been known to disrupt electricity distribution in other parts of the region.

Kazakhstan, with its awaited laws on crypto mining, also intends to curb “gray mining” activities where people set up power-consuming machines in their houses, garages, and balconies to generate crypto assets.

The Irkutsk region of eastern Russia has also identified several gray miners, exploiting their electricity and its subsidised prices.

All crypto mining farms will have to disclose themselves along with their records and other paperworks in Kazakhstan by March 19.


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Radhika Parashar
Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More
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