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- 1 Kazakhstan collected more than $6 million from crypto miners as tax in 2022.
- 2 Over 12% of the global Bitcoin mining hash rate was contributed by Kazakhstan in 2022.
Bybit, a Dubai-based crypto exchange, announced that it had secured the license for operating a Digital Asset Trading Facility and Custody by Kazakhstan’s Astana Financial Service Authority.
The approval by regulators follows the in-principle approval earlier this year. Bybit is constantly working on expanding its operating jurisdiction globally. As per market analysts, exchanges are struggling in the United States because of unclear rules and extreme pressure from regulators.
Bybit has officially gained the digital asset trading facility and custody license from AFSA Kazakhstan. With this license Bybit will grow our influence and impact in the CIS and nearby regions. pic.twitter.com/VEQrhJQC01
— Ben Zhou (@benbybit) June 7, 2023
On May 31, Bybit announced that it is wrapping up its operations in Canada after the country revealed its new set of rules and regulations.
Kazakhstan has continued to position itself at the forefront of prominent crypto-related operations. It was among the leading countries in crypto mining operations, especially after the crypto crackdown in China made miners halt their operations and leave the country.
At the time of pre-approval, Ben Zhou, the Chief Executive Officer and co-founder of Bybit, said that the company’s primary objective is to operate as per the rules and regulations of the country. Bybit backs the secure and transparent digital asset industry to benefit the users.
Additionally, the company is enlarging its services. In March, it partnered with Mastercard to introduce a debit card. This card is designed specifically for cryptocurrency payments. It also announced on May 2 that it would provide crypto services to users.
According to some available data, Kazakhstan gathered over $6 million from crypto taxes in 2022. The country is focusing on a better set of rules for the crypto industry so that it can lure in more and more companies.
Importance of Crypto in Kazakhstan
The importance of crypto is increasing in Kazakhstan because it is one of the most convenient means of generating revenue. Crypto mining is quite famous in the region because of low electricity costs and a suitable environment for miners.
Kazakhstan is ranked first in Bitcoin mining, contributing more than 12% of the total hash rate in 2022.
As per the government data for 2023, the taxes gained from crypto until April 27 amounted to 240 million tenges (Nearly $541,463). The Kazakhstan government has been closing mining operations in the country in order to conserve energy. As per the reports, the amount gained from miners in the form of taxes was not up to the expected limits.
Bitcoin mining is a process in which substantial computational power is required to solve mathematical calculations in order to develop a new block on a blockchain. Several mining rigs are present in the market and available at different price ranges.
Some call mining a profitable business, but others believe it is a waste of energy that results in insufficient rewards. Earlier this year, some popular crypto miners filed for bankruptcy, such as Core Scientific and Crypto lender Celsius, which also operate a crypto mining arm.
Back-to-back bankruptcies in the sector result from increasing volatility and unprecedented disasters like the FTX collapse and Luna Demise.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
