Kazakhstan To Raise Over $700 Million For Cryptocurrency Mining

Kazakhstan could boost its Bitcoin mining endeavors with a massive investment of over $700 million for the cryptocurrency mining sector.

September 2, 2020 | AtoZ Markets – According to the Reuters report, Kazakhstan is in talks to attract investments worth 300 billion tenge ($714 million) into the cryptocurrency sector, Digital Development Minister Bagdat Mussin. 

The Asian country claims to account for 6% of global cryptocurrency mining. Kazakhstan government passed legal amendments in June, clarifying the regulation and taxation of cryptocurrency mining that it hopes will boost its oil-dominated economy, offering relatively cheap electric power for the energy-hungry business. 

13 cryptocurrency mining farms are already operating in Kazakhstan

Thirteen “mining farms” are already operating in the Central Asian nation, and four are under construction, Bagdat revealed. “More than 80 billion tenge ($190 million) has been invested in the sector,” the minister said. Regulations in the Central Asian Country allow the mining of asset-backed cryptocurrencies and prohibit work with unsecured ones such as Bitcoin.

Crypto mining regulations in many countries have improved over the last few years as the industry continues to grow. As reported earlier, the Kazakhstan government had proposed a new tax plan for the crypto mining industry. 

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Kazakhstan government tax on the crypto mining industry

According to local reports, Kazakhstan’s ministry of economy has proposed a new tax plan requiring crypto mining companies to file an application for registration with the authorities. As reported previously, after registering, the taxpayer must then indicate the 15% tax on their annual tax calculations.

The report further notes, “the clause on registration makes the bill unique.” “The taxpayer working with cryptocurrencies stands apart from the very beginning of filing a tax return,” the report added. Funds raised from taxing crypto mining will be channeled toward building the infrastructure that is needed to fight the ongoing global pandemic while also giving the economy a boost, Sahil Kohli reported.

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