Digital currency News: One of the emerging digital currency locations, Kazakhstan, announced that it will implement a new energy fee scheme for mining companies in 2022 after the country’s president passed new law that introduces an extra layer of fees.
Kazakhstan President Kassym-Jomart Tokayev signed the law that will introduce a new tax on block reward mining companies operating in the country, which will come into effect in January 2022.
The law means an additional tax of 1 Kazakhstan tenge per kilowatt hour ($0.00233) is imposed on crypto mining businesses after the new year, designed to help regulate the industry.
The bill, which became law last month, also aims to help invest in energy infrastructure in the country, which has come under significant pressure since more digital currency mining firms chose to set up in its jurisdiction.
Albert Rau, chair of the economic reform and regional development committee, said officials hope the new regulatory regime will help “take the industry out of the shadows”. Rau is reportedly the inventor of the new legislative model that seeks to exploit the country’s growing appeal as a destination for crypto miners.
Kazakhstan is becoming increasingly popular with mining companies, including those that have dispersed from China due to strict rules for the industry. It is also favored for its low energy costs and favorable climate, making the country an ever more popular choice for international mobile mining establishments.
Amid pressures on mining in China, regional mining giants Canaan and BTC.com have moved their mining pools to Kazakhstan.
Kazakhstan is currently the fourth largest country in terms of BTC hash rate after China, the USA and Russia.