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Here’s how much Kazakh gov’t made off crypto mining in Q1 2022

The federal government of Kazakhstan, one of many world’s largest international locations by the Bitcoin (BTC) mining hash price distribution, has reported price range earnings derived from cryptocurrency mining.

On Might 30, Kazakhstan’s state income committee of the Ministry of Finance released a report on the quantity of whole power charges paid by native crypto miners within the first quarter of 2022.

In keeping with the report, Kazakhstan’s price range added 652 million Kazakhstani tenge ($1.5 million) in power charges from crypto mining in Q1 2022 after the federal government launched a digital mining charge on Jan. 1, 2022.

The committee harassed {that a} vital quantity of the anticipated sum of charges has not been acquired by the price range as the federal government has shut down a large variety of crypto mining companies with the intention to “guarantee power safety.” Moreover, the authority talked about that the federal government is considering increasing local fees for cryptocurrency mining as a part of the brand new crypto invoice.

The committee additionally famous that tax reporting on digital mining-related funds just isn’t offered for by Kazakhstan’s tax code. On Might 25, the Kazakh parliament passed within the first studying the amendments to the nationwide tax code to introduce the crypto mining tax tied to the electrical energy costs consumed by mining entities.

Associated: Binance signs MOU with Kazakhstan to further crypto adoption and regulation

In late 2021, the Information Heart Business and Blockchain Affiliation of Kazakhstan estimated that cryptocurrency mining could bring as much as $1.5 billion in income for the nation in 5 years. As beforehand reported, Kazakhstan is likely one of the world’s largest international locations by BTC mining hash price. In keeping with the newest replace of the Cambridge Bitcoin Electrical energy Consumption Index, Kazakhstan was the third-largest BTC mining location on the earth as of January 2022, with the hash price share amounting to 13%.