Kazakhstan’s Crypto Mining Industry to Receive $700 Million for Development

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • The Minister has claimed that over thirteen mining farms have been established as of now and they are operating in full swing
  • A year ago the government of Kazakhstan had established a regulatory for crypto tax which would back activities that are associated with cryptocurrencies
  • The country claims to have one of the largest cryptocurrency mining infrastructures in the world

The Digital Development Minister of Kazakhstan, Bagdat Mussin has announced that the state has been currently dealing with negotiations concerning investments in the cryptocurrency sector of the country. The country contributes a total of 6% to the global cryptocurrency mining. 

13 Mining Farms Have Been Established, 4 More Will be Added

The recent debate can bring investments worth 300 billion tenges or $700 million to facilitate the development of cryptocurrency industry in Kazakhstan. The Minister has claimed that over thirteen mining farms have been established as of now and they are operating in full swing. Plans have been confirmed to add four more mining farms to step crypto mining in Kazakhstan as well as attract funds from potential investors. A total investment of 80 billion tenge ($190 million) has been solely dedicated to the works of cryptocurrency development, confirms Mussin. And a few days ago, they were under the preliminary stage of agreements that are supposed to entice an enormous amount of 300 billion tenges. 

Kazakhstan’s Crypto Tax Regulation Policies

The declaration of recent ventures coincides with an announcement made by another minister during the parliamentary sessions back in June. He had anticipated that the cryptocurrency mining industries were going to get $700 million in the next three years. A year ago the government of Kazakhstan had established a regulatory for crypto tax which would back activities that are associated with cryptocurrencies. The framework demolished the means of using cryptocurrency mining tax as an income. 

However, this is only valid until the cryptocurrency is not converted into fiat. In addition, the cryptocurrency mining firms in Kazakhstan can be accountable to similar taxes to data centres in case they use other hardware to provide crypto mining services. 

Cryptocurrency Mining Industry Will Boost its Economy

Later in June, the government passed amendments to provide better clarity to the cryptocurrency tax regulations. As we know, Kazakhstan’s economy is hugely dependent on its oil reserves but with cryptocurrency the economy of the country can be boosted. This will in turn power its energy deficit industries and offer much more cost effective resources. 

Not to mention, the country claims to have one of the largest cryptocurrency mining infrastructures in the world. The Ekibastuz cryptocurrency mining facility near the Russian border has the capacity of holding 50,000 mining rigs. This site can employ upto 160 individuals which mainly include engineers, electricians and so on.

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