Kazakhstan Has Reduced Electricity Tariffs For Bitcoin Miners

In Kazakhstan from January 1, 2024, amendments to tax legislation that reduce the financial burden on cryptocurrency exchanges and mining enterprises will come into force.

Trading platforms registered in the country are exempt from value added tax on transactions with digital assets.

A fixed tariff for electricity consumption at the level of 2 tenge per kilowatt-hour is introduced for miners. This means that miners who consume a large amount of electricity will be able to save significant funds.

In addition, for companies mining cryptocurrencies on their own generating capacities, the electricity fee will be reduced from 10 to 1 tenge per kilowatt-hour.

These amendments were proposed by the Kazakhstan Association of Blockchain Technologies and Data Centers to increase the competitiveness of local entrepreneurs in the crypto market.

The corresponding law was signed by President Kasym-Jomart Tokayev December 12.

In September, eight mining companies from Kazakhstan complained to the president about the "plight" of the industry in the country, asking him to reconsider electricity tariffs and tax policy.

According to the Finance Ministry's calculation, Kazakhstani miners paid $6.7 million in taxes in 2022.