Kazakhstan Earnings Turns Out $1.5 Million as per Q1 Crypto Mining Report

• The country is a global leader in the hash rate of BTC mining.
• The government is contemplating raising municipal costs for cryptocurrency mining.

The government of Kazakhstan, one of the biggest nations in the world in terms of the distribution of Bitcoin (BTC) mining hash rates, has announced budget gains from cryptocurrency mining. This week, a study by Kazakhstan’s Ministry of Finance’s State Revenue Committee revealed the entire amount of energy costs paid by local crypto miners in the first quarter of 2022.

After the introduction of a digital mining tax on January 1, 2022, Kazakhstan’s budget received a 625 million Kazakhstani tenge ($1.5 million) in energy fees from crypto mining. Because the government had shut down many crypto mining enterprises to “ensure energy security,” the committee said that a major portion of the projected payments had not been paid. In addition, the government is contemplating raising municipal costs for cryptocurrency mining as part of the new crypto law, according to the authority in question.

Third Largest BTC Mining Site

According to the committee, Kazakhstan’s tax statute does not have a provision for reporting digital mining-related payments for tax purposes. First-reading modifications to national tax law that include a tax on cryptocurrency mining were approved on Wednesday by the Kazakhastan parliament.

Cryptocurrency mining might earn Kazakhstan as much as $1.5 billion in income over the next five years, according to the Data Center Industry and Blockchain Association of Kazakhstan. The country is a global leader in the hash rate of BTC mining. According to the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan was the third-largest BTC mining site globally as of January 2022, with a hash rate share of 13% of the world’s BTC mining capacity.