Several cryptocurrency companies are taking new steps regarding to their tokens and coins in the market. Now, many countries are taking some official decision regarding to cryptocurrency. As per the latest updates, the Kazakhstan authorities are discussing new regulations for the country’s crypto space that may lead to a serious rise in the tax burden on the mining business. In the proposed changes is a fivefold hike of the free miner’s pay per each kW hour of utilized electricity. Now, the Government of Kazakhstan has started its debate over the new legislation for the cryptocurrency industry.
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According to the media of the country, a draft law “On Digital Assets in the Republic of Kazakhstan” has covered certain matters that concern the growing mining sector of cryptocurrency. Along with this, the First Deputy Minister of Finance Marat Sultangaziyev held a meeting of an interdepartmental commission that the activities of mining are now subject only to registration, but still, there are more rules yet to come. He also noted that it is very difficult to identify underground miners who use a lot of electricity which is also illegal.
The Country of Central Asia, Kazakhstan is trying to deal with a growing power deficit for the last year when the country had welcomed the mining companies moving out of China after Beijing started a crackdown on the Bitcoin mining operations last year in May. Due to this, the shortages were blamed on miners and the crypto farms were also shut down across the Central Asian Nation.
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Now, the forthcoming modification will make all unauthorized mining illegal. Along with this, the taxation for registered entities will also raise. Kazakhstan launched a surcharge of 1 tenge per kW-hour of consumed electricity last summer. Now, the authorities are planning to raise to 5 tenges per kWh ($0.01), revealed by Sultangaziyev.
With this, Kazakhstan had made a plan to impose a levy on mining equipment regardless of whether it is inside use or unplugged. The firms of mining will be constrained to report the number and also, the type of coin minting devices and the fee will be paid on a quarterly basis. Because of this step, it is forcing some mining companies to leave Kazakhstan. To handle the issue, the country started to increase the imports of electricity from the Russian Federation last year. Also, the government is planning to revive a project to construct a nuclear power plant.