Kazakhstan Made $1.5M From Bitcoin Mining Fees in Q1 2022
The Central Asian country's new crackdown on bulldozers has come at the expense of significant energy tax revenues for the state.
Kazakhstan's public administration earned 652 million Kazakh tenge ($1.5 million) in revenue from Bitcoin miners in the first quarter of 2022. This number was significantly lower than expected, largely due to the closure of the public administration of the country's mining companies from the start. before the end of last year.
Mining in Kazakhstan
According to a report Monday by the State Committee of Revenue of the Ministry of Finance of Kazakhstan, spending on bitcoin mining was received in 12 regions of the country.However, only three organizations made significant contributions to these expenses: AISolutions, Agro Energy and BCD Company.
In Kazakhstan, bitcoin miners are expected to pay energy costs to the state under the regulation introduced on January 1, 2022. On the 20th day of the last month of each quarter, miners must pay exactly 1 tenge (0.0024 USD) for each kilowatt hour of electricity consumed. As the Advisory Group reminds readers, increasing this quota is currently being teased in Parliament.However, the report notes that normal rates for the first quarter "were not in line with the spending plan" as most miners have been "off power" for more than a year. Apparently, the shutdowns were done for "energy security" reasons, as mining appears to have previously put a strain on the country's power grid and may have contributed to the blackouts.
However, mining actually consumes a small part of all world energy, a significantly large part of the industry is located in Kazakhstan. The Central Asian country is home to fewer than 19 million people but accounts for 13.22% of the global hash rate according to current figures, making it the third largest Bitcoin mining hub.As of March, the state had closed 106 mining farms in the city. Given Bitcoin's cost, it is currently considering an additional mining fee, so the nation's financial plan will indirectly benefit from the resource's cost increase.
Bulldozer VS Power Grids
Iran, another country that provides an inordinate amount of hash rate, also takes unlicensed mining activities within its country seriously. The country has faced similar problems of power outages in the past and has responded with an occasional mining scheme to ensure bulldozers don't pressure the grid when it's under high voltage.
Texas, on the other hand, has adopted the outlandish strategy of welcoming more bulldozers to the state in response to power outages.Senior Representative Greg Abbott agrees that the mining industry will push for the development of more Energy Age offices in the district, which can help balance the now fragile network.