Kazakh crypto miners plead with President to cut energy prices

In Kazakhstan, the world’s third-largest market when it comes to Bitcoin mining hash fee, the native crypto-mining operators are complaining in regards to the excessive vitality costs to the nationwide chief. 

In line with the native media, eight main cryptocurrency mining operators signed an open letter to the President of Kazakhstan, Kassym-Jomart Tokayev. This record consists of BCD Firm, TT TECH Restricted, KZ Techniques, AI Options, Inexperienced Energy Resolution Ltd., VerCom, and KINUR INVEST.

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The letter states that the Kazakh crypto-mining business is in a “very distressful state of affairs” due to excessive vitality costs for the miners. In line with the textual content:

“As of at the moment, all main business gamers have suspended their actions and plan to fully stop their enterprise within the Republic of Kazakhstan by the top of the 12 months.” 

The executives who signed the letter imagine that the state of affairs with costs derails the federal government’s efforts to control the crypto business basically and mining specifically. In line with the letter, the issue is a consequence of the choice to lift taxes on vitality for crypto miners. Due to the taxes they levy, the nation has already misplaced its place amongst such crypto mining leaders as the US, Russia, and China, and the business stands getting ready to extinction, the letter claims:

“If the federal government doesn’t take pressing measures, the digital mining business within the Republic of Kazakhstan will stop to exist.” 

The nation launched taxes on digital mining on Jan. 1, 2022, based mostly on electrical energy consumption by mining entities. The regulation emerged amid rising nationwide frustration with crypto miners’ undertaxed utilization of the nationwide energy grid. 

Even on the highest mark, 1 kWh of taxed electrical energy in Kazakhstan prices miners round $0.067, considerably decrease than the common of $0.12 per kWh earlier than any taxes in the US. In line with the information from the Kazakh authorities, it obtained solely round $7 million (3.07 billion tenges) in tax funds from crypto mining entities in 2022.