Cryptocurrency miners in Kazakhstan will pay an extra fee per Kw hour of electricity.
Cryptocurrency miners in Kazakhstan will pay more than other consumers for the electricity they use to mine digital currencies. The country’s President Kassym-Jomart Tokayev this week signed a new law amending the law on “taxes to the budget and other mandatory payments.”
Some officials who made a statement on the subject claim that the additional fee will “put in a difficult situation” for cryptocurrency miners currently operating in the country. However, MP Albert Rau, cited by local media as the author of the bill, says there will be no “critical consequences” from the new law’s adoption.
The representatives of the crypto money industry in the country, who made a statement about the new law, expressed their reactions by disagreeing with Rau’s views that the move came at a very inappropriate moment. In addition, the members of the Kazakhstan National Blockchain and Data Center Industry Association said that; this decision regarding cryptocurrency miners “will have a very negative impact on the investment attractiveness of the industry.”
It stated that the main concern is this extra fee may turn away Chinese companies. They are seeking other jurisdictions amid the ongoing crackdown on cryptocurrency mining in the People’s Republic of China. As, Kazakhstan is seen among other potential mining destinations as the country slowly warms to the cryptocurrency industry. They provide cheap energy services over the last few years. In fact, the country has become the focal point of miners leaving China.
Miners Migrate to Kazakhstan
In May, Shenzhen-based mining company Bit Mining announced plans to build a 100 MW mining data center in Kazakhstan in partnership with two local firms. In June, the company began shipping mining devices there as Chinese authorities intensified the pressure on its Bitcoin mining operations.
Also earlier last month, Hangzhou-based mining hardware manufacturer Canaan set up an after-sales service center in Kazakhstan as more Chinese miners consider moving to Central Asia.
After all these developments, it eagerly awaits what steps the country’s authorities will take.