Emerging digital currency hotspot Kazakhstan has announced it is to implement a new regime of energy fees for mining companies in 2022, after the country’s president passed a new law introducing an extra tier of charges.
President of the Republic of Kazakhstan Kassym-Jomart Tokayev signed the law that will introduce a new tax levy on block reward mining companies operating in the country, which will come into force in January 2022.
The law means there is a 1 Kazakhstan tenge ($0.00233) per kilowatt-hour additional levy applied to crypto mining businesses after the new year, which is designed to assist with regulation of the sector.
The bill, which was passed into law last month, is also aimed at helping invest in energy infrastructure in the country, which has come under significant pressure since more digital currency mining firms chose to set up in the jurisdiction.
Chairman of the committee for economic reform and regional development, Albert Rau, said authorities were hoping the new regulatory regime would help bring the sector “out of the shadows.” Rau is reported to be the author of the new legislative model, which seeks to harness the country’s growing appeal as a destination for crypto miners.
Kazakhstan has been proving increasingly popular with mining companies, including those dispersed from China amid tightening rules for the sector there. It is also favored for its low energy costs and suitable climate, making it an ever more popular choice for internationally mobile mining entities.
Amid the crackdown on mining in China, regional mining giants Canaan and the BTC.com mining pool relocated to Kazakhstan, making it one of the most significant global destinations for the industry.
Kazakhstan is currently the fourth largest country for hash rate for BTC, after China, the United States and Russia.
Watch: CoinGeek Zurich panel, BSV is Green Bitcoin: Energy Consumption & Environmental Sustainability
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
