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

Kazakhstan cryptocurrency miners pay more than other consumers for the electricity they use to mint digital coins. The country’s president has signed a law providing an additional fee for electricity used by energy-intensive industries.

Coin miners in Kazakhstan pay an additional fee per kilowatt hour of electricity

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

The bill, passed by the Senate in early June, introduces a new fee of 1 Kazakh tenge (about $ 0.0023) per kilowatt-hour used by cryptocurrency miners. The new electricity tariff will be introduced from January 1, 2022, announced Forklog.

Nur-Sultan authorities claim the additional fee will “pull out of the shadows” the cryptocurrency miners currently operating in the shadow economy. Albert Rau, the legislator named by local media as the author of the bill, said he could not foresee any “critical consequences” from its passage. Rau insists that parliament has approved a “government version” of the originally proposed changes.

Crypto industry fears that new electricity prices will deter Chinese miners

Representatives of the crypto sector disagree with Rau’s position and warn that the move comes at a very inopportune time. Members of the Kazakh National Association of Blockchain and Data Center Industries told the crypto news agency that the decision “will have a very negative impact on the industry’s investment attractiveness.”

The main concern is that the fee could dismiss Chinese companies that have looked to other jurisdictions amid the ongoing crackdown on cryptocurrency mining in the People’s Republic. Kazakhstan is considered one of the other potential mining destinations as the country has gradually warmed towards the crypto industry in recent years.

In May, Shenzhen-based Bit Mining announced that it was working with two local companies to build a 100 MW mining data center in Kazakhstan. When the Chinese authorities increased pressure on the Bitcoin mining operation in June, the company began shipping mining equipment there. Earlier this month, Hangzhou-headquartered mining hardware maker Canaan set up a customer service center in Kazakhstan as more Chinese miners consider relocating to Central Asia.

What impact do you think the new fee will have on the crypto mining industry in Kazakhstan? Do share your thoughts on the matter in the comments below.

Tags in this story

Amendments, Bill, Central Asia, Fees, China, Chinese, Crypto, Crypto Miner, Crypto Mining, Crypto Currency, Electricity, FEE, Kazakhstan, Law, Miners, Mining, Electricity, Tariff, Surcharge

Photo credits: Shutterstock, Pixabay, Wiki Commons

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