Kazakhstan to impose additional charges on electricity used by miners

After a sweeping crackdown on bitcoin mining at home, miners are heading overseas on a massive scale. But miners’ road to the sea is destined to be bumpy.

The U.S., Canada, and Kazakhstan, which are important places to migrate bitcoin computing power, each have their own uncertainties. For example, the United States and Canada have long construction cycles and high costs, while the Central Asian countries represented by Kazakhstan have greater policy uncertainty.

Kazakhstan’s policy has really produced changes recently.

Not long ago Kazakhstan’s AIFC Investment Ministry shouted through Chinese media that Chinese miners are welcome to move into the country and that a compliant hosting mine could be established in three to four weeks.

But Kazakhstan’s President Kassym-Jomart Tokayev has just signed a new bill amending the legislation “On Taxes and Other Mandatory Budgetary Payments” that will impose additional fees on electricity used by the cryptocurrency mining industry.

The bill, which was voted on by the Senate in early June and will come into effect on January 1, 2022, requires miners to pay an additional surcharge of about $0.0023 per kilowatt of electricity used.

This is a legalization of the proposal to set new electricity pricing rules for cryptocurrency mining in 2020.

In August 2020 the media reported that the Ministry of Economy of Kazakhstan had developed a proposal for matters related to taxation of cryptocurrency mining, which planned to impose a 15% tax on cryptocurrency mining. In addition, the authorities plan to establish new electricity tariff rules for cryptocurrency mining.

Previous reports indicate that a number of Chinese miners have already been relocating their bitcoin miners in Kazakhstan.

On June 22 US-listed Bit Mining (formerly 500 Lottery) announced the arrival of the first batch of 320 mining machines in Kazakhstan, with a total computing power of about 18.2 PH/S, which are expected to be deployed and operational on June 27. According to the plan, the second and third batches of 2,600 mining machines are expected to arrive in Kazakhstan by July 1, with a total computing power of approximately 102.3 PH/S. Based on the company’s overseas expansion strategy, the rest of Bit Mining’s own mining machines will also be shipped overseas in batches.

On June 23, Jiarnan Technology will lay out its bitcoin mining business in Kazakhstan. The purpose of this move is to avoid a single source of revenue and to improve the inventory situation to cope with the impact of bitcoin price fluctuations, according to Jarnan Technology’s chairman and CEO, Zhang Nangan. The move comes on the heels of Jiarnan Technology setting up its first overseas after-sales service center in Kazakhstan.

Back in October 2020 Microbit Mining Pools announced a global strategic partnership with and Kazakh mining giant Enegix, which owns a 180 megawatt mining data center, one of the largest in the world for bitcoin mining.

This also means that Kazakhstan will have a growing share of bitcoin computing power. in September 2020 Kazakhstan’s Minister of Digital Development Bagdat Mussin has publicly revealed that bitcoin computing power in Kazakhstan accounts for 6% of the global bitcoin network-wide computing power.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/kazakhstan-to-impose-additional-charges-on-electricity-used-by-miners/
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