As Kazakhstan turns into more and more widespread for cryptocurrency mining, the nation’s president has signed a brand new legislation introducing an additional levy for crypto miners.

President of the Republic of Kazakhstan Kassym-Jomart Tokayev just lately signed final a brand new legislation that imposes an extra tax charge for power utilized by crypto miners working within the nation. The brand new charges will take impact beginning in January 2022.

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In accordance with native information company Kursiv, the brand new legislation introduces an extra charge of 1 Kazakhstan tenge ($0.00233) per kilowatt-hour utilized by cryptocurrency miners.

The extra tax levy is a part of a sequence of legislative amendments to the nationwide tax code regarding crypto miners. The Kazakh parliament passed the invoice in mid-June.

Albert Rau, Chairman of the committee for financial reform and regional improvement,  said that the principle goal of the brand new laws is to control the crypto mining trade and “deliver it out of the shadows.” Rau is a former First Vice-Minister of funding and improvement of Kazakhstan and is reportedly the writer of the brand new legislative initiative.

Kazakhstan has just lately emerged as a serious vacation spot for cryptocurrency mining operations. In accordance with data from the Cambridge Bitcoin Electrical energy Consumption Index, Kazakhstan is the fourth-largest nation on the planet when it comes to its whole Bitcoin hash charge share after China, america and Russia. 

Associated: Kazakhstan’s government to create roadmap for developing crypto market

Bitcoin hash charge by nation. Supply: Cambridge Bitcoin Electricity Consumption Index

As beforehand reported by Cointelegraph, Chinese language crypto mining giants like Canaan have been relocating their operations to Kazakhstan amid a crackdown on crypto mining by Chinese language authorities. Main Chinese language mining pool BTC.com additionally efficiently relocated a part of its miners to Kazakhstan in late June.