Kazakhstan intends to tax miners

Kazakhstan intends to tax miners
CONTENT

  • Tax revenues will go to economic recovery after the epidemic

  • Kazakhstan accounts for about 8% of the total bitcoin hashrate

  • The tax will lower the investment attractiveness of the mining business in the country

International consortium of news organizations developing transparency standards.

The government has proposed to introduce a 15% tax on mining companies in order to create infrastructure to fight the pandemic.

Kazakhstan intends to tax miners

Kazakhstan proposes to introduce a tax of 15% on bitcoin miners to raise capital to support the economy amid the COVID-19 pandemic. To date, the number of deaths in the country from coronavirus exceeds 1,300 people.

According to research company Bitooda, Kazakhstan accounts for about 8% of the total bitcoin hash rate, which changes the computing power of the BTC network. Since these Central Asian countries account for a large share of the hash rate, its importance in the mining community cannot be underestimated, and the introduction of a tax on the mining of coins could have global consequences for Bitcoin..

As recently as June, the editorial staff of BeInCrypto reported that Kazakhstan plans to attract investment capital through the mining and virtual asset market..

The Kazakh mining company Xive notes that the tax on bitcoin mining will reduce the investment attractiveness of the mining business in the country.

Kazakhstan intends to tax miners

Background

Recall that in March 2018, the now former chairman of the National Bank of Kazakhstan, Daaniyar Akishev, proposed to prohibit the exchange of digital assets for national currency, calling cryptocurrencies “an ideal tool for money laundering and tax evasion”.

But three months later, the then President of Kazakhstan, Nursultan Nazarbayev, took the initiative to apply a global approach to the regulation of the crypto market, stressing the need to develop common rules and regulations..

It is important to clarify that the project does not provide for the introduction of a tax on profits from digital assets. Rather, it refers to converting crypto assets into fiat money. Back in May, Xive co-founder Didar Bekbolov said about this, who explained that when selling bitcoins on a crypto exchange, you will have to pay income tax.

 

Disclaimer

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