- In February, Tokayev said that the rate of 1 Kazakh tenge (US$0.0021) per kilowatt of power is "negligible" and instructed the government to increase the tax as soon as possible and to come up with a full proposal for crypto mining regulation by April 1. The 1 tenge tax came into effect on Jan. 1.
- The new tax rate will be determined by the average price of the electricity consumed to mine coins during a certain tax period, according to a copy of the amendments published on hosting site Zakon.kz. The range is between 1 tenge per kilowatt hour (kWh), if a miner is paying more than 24 tenge per kWh for electricity, to a tax of 25 tenge per kWh, if a miner is paying less than 1 tenge per kWh, according to the amendments.
- The law effectively brings the price of electricity including tax to around 25 tenge, or 5 cents, per kWh with some exceptions. That is about the maximum price that miners are looking for in other countries such as the U.S. and Canada.
- Miners that use their own electricity, an example of behind-the-meter consumption, will pay 10 tenge per kWh in taxes, whereas those who use renewable energy that they produce will pay 1 tenge per kWh, according to the amendments.
- The amendments will go into effect on Jan. 1.
- CoinDesk has earlier reported that Kazakhstan has been trying to root out mining operations that don't have proper licensing to reduce the load on the country's energy grid. In March, Kazakhstan announced the closure of 106 mines, seizing 67,000 machines worth $193 million. In May, the government required crypto miners to register their operations with authorities.
- At the same time, Kazakhstan has been trying to bring crypto exchanges to Kazakhstan Nur-Sultan, previously called Astana and the capital city of Kazakhstan. The nation aims to test a pilot project for the creation and operation of cryptocurrency exchanges in the Astana International Financial Centre (AIFC), which was founded in 2018 with the goal of becoming a Central Asian financial hub.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.