Kazakhstan Earns $7 Million from Crypto Mining Taxes in 2022
Kazakhstan's government earned $7 million in tax payments from crypto mining entities in 2022 after implementing an amended law regulating the fiscal burden of mining cryptocurrencies.
According to reports, Kazakhstan collected over $7 million in tax payments from crypto mining entities in 2022 following the implementation of an amended law regulating the fiscal burden of mining cryptocurrencies. In the first quarter of 2022 alone, the country collected over $1.5 million in mining fees. Preliminary data for 2023 shows that fees collected by April 27 totalled over $541,000. Kazakhstan ranks among the world’s top Bitcoin mining hubs, contributing 13.22% of the total Bitcoin hash rate as of January 2022. The country introduced taxes on digital mining based on electricity consumption by mining entities, which came into effect on January 1, 2022, amid growing national frustration with crypto miners’ undertaxed usage of the national power grid.
A wave of foreign mining operators relocated to Kazakhstan during the 2021 bull market, leading to already strained relations between the country and miners. By November 2021, it was estimated that over 87,849 rigs had been brought to the country following China’s crackdown on mining activities. To reduce tax evasion, the government has announced plans to introduce new crypto regulations, which include requiring miners to sell at least 75% of crypto earned via registered exchanges and seeking government approval for secured digital assets issuers. These regulations are expected to curb tax fraud and unlawful business operations.
