The Kazakhstan authority has introduced a new law regarding cryptocurrency mining taxation. The officials published a statement saying that the signed law is expected to come into effect in January 2022 and to generate billions of tenge to the national budget.
Kazakhstan joins Iran in taxing the mining industry, given the lucrative potential for business. Local media reported that companies are opposed to the new taxes, saying that it could damage the mining in the country.
After China has begun outlawing mining in the country, many businesses that were moving to neighbor Kazakhstan will now experience these new taxation rules.
As electricity in Kazakhstan is comparatively cheap, this has attracted the appeal of mining in the country. The crackdown in China has forced miners to consider other regions, and Kazakhstan has become an attractive option, despite the government has introduced electricity surcharges. In June, ASIC manufacturer Canaan began sending units to the country, while BIT Mining made a similar move in May.
Authorities worldwide are now diverting all of their attention to the regulation of the cryptocurrency market. While the mining industry stands as an important pillar in the crypto world, regulators will be sure to keep an eye on it. Whether this translates to stricter restrictions is subject to debate, but it looks increasingly likely as countries wish to maintain control over their currencies.
As reported before, China’s growing regulations on crypto have triggered the great mining exodus to other countries. Although, miners, who remain active now, are making greater profits while most of their competitors have gone offline.