According to a report from a local news media, the Minister of National Economy for Kazakhstan Alibek Kuantyrov wants to bound Bitcoin mining tax to the price of the underlying asset.
We are considering an increase in the tax burden for miners, at the moment we are also considering linking the tax rate for miners to the cost of cryptocurrency.
After China imposed a full-on ban on Bitcoin mining, large operations were forced to find new homes.
A lot of BTC miners moved to Kazakhstan because of its cheap energy, cold weather, and storage space for their hardware.
A gradation is being considered – for example, up to $40,000 one tax, over $40,000 another tax, and so on.
As the local new media added, BTC miners in Kazakhstan were disconnected from the national power grid back in January 2022.
Data from Arcane Research recorded as much as $4.8 million in losses every hour that these miners remain offline.
While it’s true that the new tax could benefit the country, it could work as the final nail in a series of events that could trigger another great BTC mining exodus.