The Kazakh government is presently working on increasing taxes on cryptocurrency mining to link the new tax rate to the value of the mined digital currency.
According to Alibek Kudanov, the government team is developing a tax plan that would tie tax payments to the value of mined tokens.
According to Alibek, this will aid the country financially in tax revenue collection because it boosts the national budget.
“We are considering increasing the tax burden for miners; at the moment, we are also considering linking the tax rate for miners to the value of the cryptocurrency.
If the government goes through with this plan, miners in Kazakhstan will see their taxes rise alongside the value of the digital assets they mine.
The country went from being one of the cheapest energy sources in the world for mining to instituting a 20 cent per kWh mining tax in one month.
Aside from the tax, the government has also begun to close down many mining farms, turning the so-called paradise into a headache for Bitcoin mining.
The collapse of the local market has had a devastating impact on economies worldwide, causing many to fear, and Kazakhstan is no exception.
Following the new regulations, it’s no surprise that crypto industry experts have criticized these policies and rules.
According to Alan Dorjiyev, a mining stakeholder in the country, there is no assurance on how the new taxes would be structured.
President Kassym-Jomart Tokayev, who ordered the agencies to raise taxation on space, has added to the uncertainty.
At the moment, conducting mining operations in the nation may be somewhat counterproductive, given that another increase in power rates is possible at any time.