Crypto Miners in Kazakhstan Start Paying Higher Electricity Fees – Mining Bitcoin News
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Since the beginning of 2023, cryptocurrency miners in Kazakhstan have had to pay new fees for the power needed to mint digital coins. The surcharge, introduced in 2021, now depends on the price of electricity consumed by bitcoin farms and can be much higher than the original fee.
The new year brings higher costs for cryptocurrency mining companies in Kazakhstan
Starting January 1, the electricity fee imposed on crypto miners in Kazakhstan will be calculated according to a progressive scale. The original universal surcharge of 1 Kazakh tenge ($0.002) per kilowatt-hour (kWh), which was first introduced in summer 2021, may now rise to 25 tenge (over $0.05).
In each case, the price depends on the source and price of the electrical energy used to mine the digital currencies. The new mechanism for determining the tariff was introduced by a law amending the country’s tax code, which was signed into law by President Kassym-Jomart Tokayev in July 2022.
The basis of the tax is the average price of electricity used by a miner during a certain tax period. If the company paid at least 24 tenge per kWh, a minimum fee of 1 tenge will be charged according to the latest tariff scale reported by Interfax Kazakhstan and other local media.
The lowest price is also offered on cryptofarms that use renewable energy, regardless of the price of electricity. And regarding energy produced from other sources – the cheaper the electricity used, the heavier the tax burden. According to reports, the fee can go up to 25 tenge per kilowatt hour.
Kazakhstan became a mining hotspot after China’s crackdown on the industry in 2021, attracting crypto miners with its low subsidized electricity prices. The flood of mining companies has been blamed for the country’s growing power deficit.
The Nur-Sultan authorities have been monitoring unlicensed mining facilities and taking steps to more comprehensively regulate the industry. The goal of a new law provision approved by Kazakhstan’s parliament in December is to oblige miners to buy surplus electricity from a government-controlled market.
An earlier legislative proposal, introduced by a group of lawmakers in October, limits mining to registered companies only. It also allows foreign entities to mine in the country as long as they have contracts with locally licensed data centers.
Do you think the new fees will make some mining companies leave Kazakhstan? Share your thoughts on the topic in the comments section below.
The authors of the picture: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for information only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damages or losses caused or alleged to be caused by or in connection with the use of or reliance on the content, goods or services mentioned in this article.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Source link
