During the first quarter of 2023, authorities in Kazakhstan gathered over $541,000 in crypto mining taxes.
In 2022, after amending its cryptocurrency mining tax law, Kazakhstan's government collected roughly $7 million (around 3.07 billion tenges) in cryptocurrency mining tax payments.
The news was revealed by the local news portal HalyqUni, which cited information obtained from the State Revenue Committee of the Ministry of Finance.
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On top of that, the news report unveiled that based on the data collected on April 27th, in the first quarter of 2023, crypto miners located in Kazkhstan paid over $541,000 (240 million tenges) in mining taxes, which is significantly lower than about $1.5 million (652 million tenges) paid, in the first quarter of 2022.
Kazakhstan implemented digital mining taxes based on mining entities' electricity consumption on January 1st, 2022. The amended legislation was also seen as a legal route for further crypto adoption in the face of increasing global regulations.
The new crypto mining tax law in Kazakhstan reads:
The purpose of the state regulation in the field of digital assets is the production and circulation of digital assets for the economic development and competitiveness of the Republic of Kazakhstan, the development of digital mining activities in the Republic of Kazakhstan.
Kazakhstan has established itself as one of the world's leading Bitcoin mining hubs. Based on the Cambridge Centre for Alternative Finance data shared on January 2022, Kazakhstan contributed 13.22% of the total BTC hash rate, with only the United States (37.84%) and China (21.11%) in front.
During the 2021 bull market, numerous foreign crypto mining firms relocated to Kazakhstan, further straining the already tense relationship between the government and crypto miners. It is believed that over 87,849 rigs had been brought into the country by November 2021.
The government of Kazakhstan recently announced plans to launch new crypto regulations aimed at fighting against tax fraud and illegal business operations.
