Pros and cons.

Recently, the topic of mining is more relevant than ever, not only does this industry now directly affect the economy in computing technologies, but also Kazakhstan has become a leader in this area, being in 3rd place after China and the United States with 8.2% of the market.

Naturally, in order to become a global hegemon in this sector of the economy, this is not enough, but Kazakhstan is an excellent place for the development of business mining for several reasons:

- Low price of electricity

- Relatively inexpensive components

- Restrictions on mining in China, as a result-the migration of businessmen to Kazakhstan

- Legality of cryptocurrency mining on the territory of Kazakhstan

- Loyalty to the authorities in this industry

- Migration of foreign specialists and businessmen to Kazakhstan

- The possibility of not only physical, but also cloud mining

- Favorable weather conditions that allow you to save on electricity

But there is one significant disadvantage that complicates the use of the received bitcoins and other cryptocurrencies, its use in Kazakhstan is illegal and is not regulated in any way. Accordingly, as in many other countries.

Also, mining in Kazakhstan will soon be taxed. From January 1, 2022. According to Chapter 69 of the Tax Code, paragraph 11 is "Payment for digital mining".

The following norms will appear in the code:

"Article 606-1. General provisions

1. The fee for digital mining is charged for the amount of electric energy consumed during digital mining.

2. The authorized body in the field of ensuring information security quarterly, no later than the 15th day of the second month following the reporting quarter, submits to the authorized body information about the payers of the fee.

Article 606-2. Fee payers

The payers of the fee are persons engaged in digital mining."

But, this tax does not look critical with a large amount of earnings from mining farms. The planned rate is 1 tenge per 1 kW / h. And it looks more like a reason to identify and register this branch of business.

But, there is also a reverse side of the coin, this tax actually increases the cost of electricity and in the future, with an increase in the tax or the cost of electricity, this market may simply migrate from Kazakhstan to neighboring countries, where the price of electricity will not remain high.

The Legal Services Provider company is interested in the legality of mining and knows how and what is needed to work in this industry without violations. If you are also interested in this industry and you have questions about the legal side of this business, please contact us.