Kazakhstan Introduces Surcharge for Electricity Used by Cryptocurrency Miners – Mining Bitcoin News

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Cryptocurrency miners in Kazakhstan will pay more than other consumers for the electricity they use to mint digital coins. The country’s president signed a law that imposes additional charges for electricity used by energy-intensive industry.

Coin miners in Kazakhstan will pay additional charge per kilowatt-hour of electricity

Crypto mining entities in Kazakhstan will pay extra for the electrical energy they burn. President Kassym-Jomart Tokayev this week signed a new law amending the Central Asian Republic’s legislation “on taxes and other compulsory payments to the budget”.

The bill, which was passed by the Senate earlier in June, introduces a new royalty of 1 Kazakhstani tenge (about $ 0.0023) per kilowatt hour used by cryptocurrency miners. The new electricity tariff will be imposed from January 1, 2022, Forklog reported.

Nur-Sultan officials say the additional fees will “bring out of the shadows” cryptocurrency miners who currently operate in the gray economy. Albert Rau, the lawmaker named by local media as the author of the bill, said he could not foresee any “critical consequences” of its passage. Rau insists that parliament has approved a “government version” of the initially proposed amendments.

Crypto industry fears new electricity tariff will distract Chinese miners

Representatives of the crypto industry disagree with Rau’s position, warning that the move comes at a very inappropriate time. Members of the Kazakh National Association of the Blockchain Industry and Data Centers told the crypto outlet that the decision “will have a very negative impact on the attractiveness of the industry’s investments.”

The main concern is that the charges could deflect Chinese companies seeking other jurisdictions in the ongoing crackdown on cryptocurrency mining in the People’s Republic. Kazakhstan was considered among other potential mining destinations, as over the past few years the country has gradually warmed towards the crypto industry.

In May, Shenzhen-based Bit Mining announced plans to build a 100 MW mining data center in Kazakhstan in partnership with two local companies. In June, as Chinese authorities stepped up pressure on bitcoin mining operations, the company began shipping mining devices there. Earlier this month, Hangzhou-based mining equipment maker Canaan established an after-sales service center in Kazakhstan as more Chinese miners consider relocating to Central Asia.

What effect do you think the new royalty will have on the crypto mining industry in Kazakhstan? Share your thoughts on the subject in the comments section below.

Tags in this story amendments, bill, central asia, charge, China, Chinese, Crypto, crypto miners, crypto mining, Cryptocurrency, Electricity, FEE, Kazakhstan, Law, Miners, mining, power, rate, extra charge

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