Mining paradise, soon a mirage? – While the Kazakhstan was considered one of the most favorable countries for the mining of Bitcoin (BTC), things seem to be changing. And all the more so since the country’s authorities have just discovered that several mining companies have benefited from tax reductions, without however being eligible for them.
Kazakhstan already decided to crack down on BTC mining companies
The President of Kazakhstan, Kassym-Jomart Tokayev, ordered the authorities toidentify all mining companies of cryptocurrencies, with a view to eventuallyincrease the tax of electricity that they are required to pay.
This injunction led the Kazakh authorities to dismantle 106 facilities crypto mining companies, which had to immediately cease their activities.
With regard to the tax applicable to minors introduced last summer, it currently amounts to 1 tenge (approximately $0.0023) per kilowatt-hour used for mining activity. According to local media, the Kazakh authorities plan to multiply this tax by 5 ! Head of State Tokayev said:
“The current rate is negligible. I instruct the government to work out a multiple increase of this tax as soon as possible. »
Moreover, the country’s authorities have discovered that several crypto mining companies have used a stratagem to qualify for tax credits. In reality, they should not have benefited from this tax relief.
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So if in addition they illegitimately benefit from tax relief!
According to information from April 3, 2022, five crypto mining companies have benefited from significant tax advantages. These advantages would have enabled them to obtain the equivalent of 18 million dollars tax exemptions. However, these mining entities should not have benefited from them, because these tax advantages were reserved for companies engaged in the innovation development. However, this does not target crypto mining companies.
These mining entities have become residents of the Astana hub, a technology park in Kazakhstan, in order to receive this financial support. However, according to a representative of the accounts of the country this should not have been the case:
“The task of the hub is to attract and implement IT investment projects. Based on the results of our audit, a recommendation was made to the government to improve legislation in this area. »
Akylbay Ibraev, Representative of the Accounts Committee in Kazakhstan
Thus, the Kazakh Accounts Committee will propose amendments to prevent such situations from recurring in the future.
In Malaysia also, Bitcoin (BTC) miners are starting to attract the attention of the authorities! Indeed, the mining of cryptocurrencies would be at the origin of a new type of crime which is the theft of electricity.
As in Kazakhstan, smart regulators will always seek to tax the crypto industry. Do not wait for future regulatory constraints to expose yourself to Bitcoin! Register quickly on the FTX reference crypto exchange platform and benefit from a lifetime reduction on your trading fees (affiliate link, see conditions on official site).