The government of Kazakhstan, one of the world's biggest nations based on the distribution of Bitcoin (BTC) mining hash rates, has revealed cryptocurrency mining-related budget gains
The state revenue Committee of Kazakhstan's Ministry of Finance issued a report on the total energy fees paid by local cryptocurrency miners in the first quarter of 2022 on May 30.
According to the study, Kazakhstan's budget received an additional 652 million Kazakhstani tenges ($1.5 million) in energy fees from crypto mining in the first quarter of 2022 after the government instituted a digital mining tax on January 1, 2022.
The committee emphasized that the budget has not collected a substantial portion of the anticipated fees due to the government's decision to "ensure energy security" by shuttering many crypto mining enterprises. In addition, the authority noted that as part of the new crypto law, the government is contemplating boosting municipal costs for cryptocurrency mining.
The committee also underlined that Kazakhstan's tax statute does not include provisions for tax reporting on payments linked to digital mining. The Kazakh parliament voted in the first reading on May 25 on the revisions to the national tax law that would implement a cryptocurrency mining tax connected to the cost of power utilized by mining businesses.
The Data Center Industry and Blockchain Association of Kazakhstan anticipated in late 2021 that cryptocurrency mining might generate as much as $1.5 billion in five years. Kazakhstan is, as previously reported, one of the most powerful nations in terms of the BTC mining hash rate. According to the most recent version of the Cambridge Bitcoin Electricity Consumption Index, as of January 2022, Kazakhstan was the third-largest BTC mining site in the world, with a 13 percent hash rate share.