Kazakhstan Wants to Raise Taxes on Crypto Mining

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The President of Kazakhstan, Kassym-Jomart Tokayev, has instructed at a government meeting to increase the tax on crypto mining and identify all mining farms, local media has reported.

According to him, the “socio-economic effect” of mining cryptocurrencies is minimal, whereas this activity creates a significant load on the power grid. At the same time, “gray miners” use electricity at very low rates and do not pay taxes on imported equipment.

Tokayev has instructed the country’s Financial Monitoring Agency to identify all mining farms, check tax and customs issues, “examine the contracts on the basis of which the technical conditions were obtained, as well as other aspects of the activity.” The department must report by March 19 this year.

The President has stressed that the state is not against licensed miners working at established rates.

He has also said some words about the need to raise the tax on crypto mining:

“The current rate – 1 tenge per 1 kWh – is negligible. I instruct the government to work out a multiple increase in this tax as soon as possible. The government should develop a complete package of solutions for the regulation and development of digital mining. I’m expecting results by April 1.”