The Kazakhstan government encourages crypto mining in the country to generate revenue. According to reports, the government received $1.5 million from crypto miners in the country during the first quarter of 2022.
The revenue is generated through government fees levied on crypto miners who consume electricity for mining activities.
Crypto mining raised Kazakhstan’s government’s revenue stream by 652 million tenges, or $1.5 million, in the first quarter. To operate in the country, a crypto farm must pay fees for utilizing electricity provided by the government.
The government initially imposed the levy on cryptocurrency miners on January 1, 2022, and revenue has been steadily flowing into the country’s coffers.
Fees are computed at one tenge for every kilowatt-hour of power consumed in cryptocurrency mining and related activities.
Crypto farms are expected to make the payment before the twentieth day of the month, and failure to do so attracts penalties from the government.
Currently, the tax laws and guidelines have not been altered to incorporate this charge as a form of tax by the government.
In recent years, Kazakhstan has attracted an influx of crypto miners because of its affordable electricity rate. This has led to a power deficit, according to the government. The charge was introduced to improve the government’s revenue and cater to the reported electricity deficit in the country.
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