The Kazakh government is considering large price increases for electricity and taxes for crypto miners. A new proposal could result in another miner exodus if operations become unsustainable due to overheads.
The Kazakh government is considering a three-pronged proposal designed to make crypto miners pay much more for operating in the country, which could make Kazakhstan less attractive to the industry.a price increase from $0.0023 per Kwh to $0.01 specifically for crypto miners. He also proposed a tax on each individual graphics card and each piece of equipment needed for crypto mining.
house upwards of 10,000 mining rigs including ASICs , GPUs, racks, cooling units, and associated facilities.last month, Kazakhstan has become one of the most popular destinations for crypto miners following the China ban on mining last summer. Around Jan. 5, the Bitcoin network’s hash rate plummeted by 13.4% in a day from about 205 exahashes per second to 177 EH/s due to the brief shut down in Kazakhstan.
BIT Mining, a large Bitcoin mining operation that moved from China to Kazakhstan last July, stated in January that the political unrestits operations elsewhere. However, that was before the power and tax increases were proposed. Cheap electricity costs and proximity to China have attracted miners fleeing from Chinese authorities amid crackdowns in the country. This led Kazakhstan to become the second-largest producer of hash power for Bitcoin behind the United States, producing about 18% of the network’sas of August 2021 according to Cambridge University. It may become less desirable for new and existing miners to call it their base of operations if the crippling taxation proposals come into force.
It should also be noted that Kazakhstan has struggled with power supply issues since late last year, around the same time when crypto miners rushed in from China. The country saw an 8% increase in domestic electricity consumption through 2021, leading the government to
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Kazakh President Tokayev strips predecessor Nazarbayev of key powersTokayev passed an amendment to a law which removes the need to agree on domestic and foreign policy decisions with Nazarbayev, who was seen as the country’s top decision-maker prior to January violence.
Read more »
Google Cloud to detect crypto-mining malware on virtual machines86% of compromised Google Cloud instances analyzed were related to crypto mining. That’s when the Google Cybersecurity Action Team assembles to save the day.
Read more »
Kazakhstan floats 500% tax increase on Bitcoin miners, leading some to eye relocationKazakhstan floats 500% tax increase on Bitcoin miners, leading some to eye relocation by the_postman_
Read more »
Bitcoin rejected after attacking $42K as trader says BTC price impulse move not 'done yet'Bitcoin analysts focus on new BTC price support targets as $42,000 stays in play.
Read more »
Venezuelans reportedly hit by new Bitcoin tax of up to 20%As the Venezuelan bolivar lost over 70% of its value in 2021 alone, the government is working to incentivize its use by planning a 20% tax on crypto and USD transactions.
Read more »