Kazakhstan and Kyrgyzstan will solve economic problems through taxes on mining

The Kazakh authorities abandoned the idea of ​​tax-free mining, the goal of which was to reach the top threeworld leaders in Bitcoin mining. The development of the economic crisis and the drop in export revenues from the sale of minerals are forcing the country to look for additional ways to fill the budget.

Kazakhstan miners are now expecting a special electricity tariff and a 15% rate on mined Bitcoin.

The funds received will go to the fund to combatdisease Covid-19. The country was covered by the second wave of the epidemic, health care bears large financial costs for the purchase of PPE, medical equipment and drugs. However, this does not justify changing the rules of work, tax-free mining was one of the conditions for attracting investments and legalizing business.

The authorities' tax initiative will lead to the oppositethe departure of mining into the shadows, which is not difficult to accomplish given the high level of corruption in Kazakhstan. The country's mines can issue up to 6% of the global hash rate, but according to official data, only half of the ASIC miners are registered - 3.15% of the world's Bitcoin mining.

The problem of corruption is also acute in the neighboringstate – Kyrgyzstan, where the authorities also decided to tax miners. The country has already changed the Tax Code, adding an article on the mining of cryptocurrencies; now it remains to decide on the level of the rate.

Taxation project promoted by the Ministry of EconomyKyrgyzstan, insisting on the need to increase tax revenues during the coronavirus pandemic. Officially, the territory of Kyrgyzstan accounts for only 0.15% of the hash rate, but the work of farms "in the shadows" is striking in its scope.

In mid-July of this year, the StateThe Economic Crime Service has covered a mine with 6,691 Antminer S9i, 1,451 units of the T9i budget model and 339 ASIC miners for Litecoin. The enterprise operated in a free economic zone (FEZ) and regularly paid for electricity, showing a different type of activity.

The mine consumed 6-7 MW per month, abnormalnumber for FEZ, but had a corrupt cover from government officials. Last year, at the same place, law enforcement officers stopped the activity of a mining farm with a power consumption of 15 MW.

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