After Kazakhstan President Nursultan Nazarbayev signed the law containing tax reform, the costs of cryptocurrency mining will increase in the country, which is one of the largest locations in the world in Bitcoin mining.

According to the new tax law, the tax amount to be charged from crypto mining will vary according to the amount of energy used in a certain tax period. The amount of tax to be charged to miners will vary from 1 Kazakhstan tenge ($0.0021) to 10 Kazakhstan tenge ($0.021) per kilowatt hour (kWh) depending on the energy used.

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On the other hand, companies that mine cryptocurrencies using renewable energy sources will be very advantageous in this case. Because, regardless of the amount of energy they use, a low tax of 1 tenge per kilowatt hour (kWh) will be charged to these mining companies.

With the latest tax move in Kazakhstan, it can be said that the pressure on cryptocurrency miners continues in the country. Kazakhstan had imposed restrictions on miners' electricity use during the winter months. On the other hand, some miners exposed to harsh regulations had to leave the country with the start of energy restrictions.

The new tax rates in the country could be the last straw for miners who are already having a hard time with Bitcoin falling hard in 2022. It is known that Bitcoin miners have had difficulties in meeting their costs in recent months and have had to sell the Bitcoins in their portfolios. Some large Bitcoin mining companies have started to downsize and layoffs in order to overcome the crisis.

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China, which was a pioneer in Bitcoin mining until last year, has banned cryptocurrency mining within its country's borders after enacting a broad nationwide ban on cryptocurrencies. On top of that, many mining companies moved their operations to one of the closest locations, Kazakhstan. Meanwhile, the USA has become a leading country in cryptocurrency mining, while Kazakhstan has risen to a significant level in Bitcoin mining.

The influx of cryptocurrency miners to Kazakhstan due to favorable conditions caused many problems in the country, especially energy. On top of that, the Kazakhstan Government, which has brought strict measures to crypto miners, will finally increase the pressure on Bitcoin miners by imposing a serious tax burden on miners.