Kazakhstan Crypto Miners Seek Taxation Policy Revisions Amid Industry Exodus
Licensed crypto mining companies operating in Kazakhstan have called on the government to reconsider its taxation policies for the sector, citing dire conditions.
These mining firms, among the largest in the nation, plan to exit Kazakhstan by year-end due to high production costs resulting from reduced access to subsidized electricity and a progressive surcharge on power usage imposed by the government. In an open letter to President Kassym-Jomart Tokayev, eight crypto mining companies urged a revision of tax rules, emphasizing that Kazakhstan’s mining sector is in a critical state, with major industry players suspending operations.
They highlight their compliance with licensing and registration requirements but express concern that the tax policy is driving the industry’s decline, leading to a significant loss of global mining share. The fluctuating electricity surcharge, which can reach over $0.05 per kWh, poses a significant financial burden on mining operations, accounting for up to 80% of the value of mined digital assets. Kazakhstan had become a crypto mining hub after China’s crackdown on the industry but is now witnessing an exodus of mining companies due to regulatory and power constraints.
Clever Robot News Desk 3rd October 2023
