The President Of Kazkahstan Wants A New Law To Increase The Price Of Electricity For Crypto Miners

2022-02-11 00:31:54
Special Crypto Mining Electricity Law

Kassym-Jomart Tokayev, President of Kazakhstan, imposed its government to come up with a new electricity law, in order to increase the price for everyone that is mining crypto in the country.

According to the President, the country is willing to allow crypto mining, but only if it is properly regulated, i.e. taxed.

Moreover, the President states that this includes every piece of data that is connected to crypto mining. Some of the requirements are inspection of all technical documentation, customs and most importantly, taxation.

As a result, President Tokayev ordered Kazakhstan’s Financial Monitoring Agency to conduct thorough research concerning the crypto mining market. And the investigators from the FMA have until the 15th of March to comprise a report for the commander-in-chief of Kazakhstan.

Those who want to work in this field must have an appropriate license, receive electricity at adequate tariffs, declare income and pay taxes, launch green energy projects.

The biggest concern, however, is definitely taxing all crypto mining activities in Kazakhstan via the new law that will increase electricity for crypto miners. And according to the country’s news outlets, the government of Kazakhstan wants to increase the price of electricity for crypto mining fivefold.

The current rate is negligible. I instruct the government to work out multiple increases of this tax as soon as possible.Kassym-Jomart Tokayev | President of Kazakhstan
Problems Beyond Crypto Mining

Just a reminder, Kazakhstan already changed the price of its electricity back in 2021. More specifically, the country was selling 1 kilowatt per hour for about $0.0023. And as per the President himself, this is totally unacceptable.

Furthermore, during an official government meeting, President Tokayev issued an outright order to all authorities in the country to come up with proper crypto legislation, in a little over a month, or by April 1st.

While Kazakhstan’s crypto mining scene literally exploded in 2021, thanks to the Chinese crypto ban, the increase in the electricity taxes already forced several crypto mining companies to leave the country.

This is only in addition to the government outright restrictions on internet access, a result of the civil unrest at the beginning of January. This was enough for the majority of foreign operators to flee Kazakhstan, with crypto operators being at the top of the list.

Whatever the case, President Tokayev definitely has quite a busy year ahead. Considering that the government of Kazakhstan increased the price of basically every energy source in the country, including natural gas and fuel.

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