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Crypto Miners in Kazakhstan to Pay Higher Rates for The Electricity They Use to Mint Digital Coding

Crypto Miners in Kazakhstan to Pay Higher Rates for The Electricity They Use to Mint Digital Coding

Cryptocurrency miners in Kazakhstan will pay a higher price for the power they use to create digital currencies than other customers. The country’s president has approved a bill imposing a surcharge on the energy used by the energy-intensive industry.

Kazakhstani Coin Miners To Pay An Extra Fee For Electricity Used.

The new bill proposes charging the crypto mining entities in Kazakhstan, a fee for the electricity they use. Subsequently, this Monday, President Kassym-Jomart Tokayev signed a new law revising the Central Asian republic’s laws “on taxes and other obligatory payments to the budget.”

The measure, which the Senate voted earlier this month, establishes a new charge of 1 Kazakhstani tenge (about $0.0023) every kilowatt-hour utilized by bitcoin miners. According to Forklog, the increased power pricing will take effect from January 1, 2022.

Bringing Crypto Miners Out Of The Shadow

According to authorities in Nur-Sultan, the additional price will “bring out of the shadow” those shady cryptocurrency miners. These shady miners are the ones currently operating in the grey market. The bill’s author, Albert Rau stated he didn’t see any “critical consequences” from its approval. Meanwhile, Rau claims that the parliament has adopted a “government version” of the presented initial modifications.

Crypto Industry Not Favouring The Plan

However, the crypto industry representatives disagree with Rau’s viewpoint, claiming that the move comes at an inconvenient moment. According to members of Kazakhstan’s National Association of Blockchain and Data Center Industry, the decision “will have a very negative impact on the investment attractiveness of the industry.”

The cryptocurrency industry is concerned that a new electricity rate would drive Chinese miners away. As the cryptocurrency crackdown in China is driving Chinese firms away. Kazakhstan has been mentioned as a prospective mining site. This is due to the government has increasingly warmed up to the crypto sector in recent years.

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