Mining tax in Kazakhstan is going to be increased by 10 times


The Chairman of the Ministry of National Economy of the State, Alibek Kuantyrov, made a statement about increasing taxation on the production of crypto coins by 10 times. With the growth of cryptocurrency mining in Kazakhstan, electricity consumption has increased significantly.

At a government meeting on February 8, 2022, Kassym-Jomart Tokayev, President of Kazakhstan, ordered an audit of the virtual currency mining segment. He also ordered to increase taxation on mining activities. The following theses were highlighted from the speech of the head of state:

  • the country does not prevent mining, but on legal terms;
  • miners must obtain a license to mine the coin;
  • the use of electricity will be carried out at agreed rates;
  • profit must be declared;
  • taxes levied have been paid off.

Alibek Kuantyrov made a report on Tuesday, where he announced the execution of the President's order and the development of the Ministry of Structure's approaches to raising taxes on the production of cryptocoins. The message spoke about the increase in the rate in the ratio of 1:10 tenge (according to the US system, this value is 0.0023:0.023 $) per kWh.

According to the Department of Energy, registered mining organizations consume more than 640 MW of electricity, while unofficial power consumption exceeds the figure of 1.4 GW.

According to an analysis by the University of Economics in Cambridge, Kazakhstan in 2021 was in second position in terms of the number of cryptocurrency mining in the world. The size of mining in the country was 18.1%. The first place was occupied by the USA (35.4%). The share of Russia is 11.2%.