Kazakhstan Recorded $1.5M From BTC Mining Fees In Q1, 2022 PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Kazakhstan Recorded $1.5M From BTC Mining Fees In Q1, 2022

Time Stamp: May 31, 2022 12:28 PM

Kazakhstan recorded $1.5 million from BTC mining fees in the first quarter of 2022 and the recent crackdown on miners came at the cost of substantial energy fee revenue for the state as we can see more today in our latest Bitcoin news.

Kazakhstan recorded $1.5 million in fees from Bitcoin miners and the figure was still below expectations because of the government shutdown of mining farms across the country that started last year. According to the reports from the State Revenue Committee of the Ministry of Finance, BTC Mining Fees poured in from 12 Areas of the country but the major payers of the fees included three companies alone: Argo Energy, solutions, and BCD Company.

Bitcoin miners were required to pay energy fees to the state as a part of the legislation that was introduced in January. On the 20th day of the last month of each quarter, the miners have to pay $0.0024 for every kilowatt-hour of electrical energy spent with the committee remaining that an increase to this rate is being debated in parliament as of now. The expected fees for Q1 were not recieved by the budget as most miners were getting disconnected from electricity for a year now. The disconnections were executed in the name of energy security since the mining seems to strain the electricity grid in the country and contributed to many blackouts.

Russian Government Says Miners, energy, consume, country

Mining still consumes a small fraction of the total global energy whcih is an outsized portion of the industry locked in Kazakhstan. The country is home to under 19 million people but it accounts for 13.22% of the global hash rate as per the recent figures which makes it the third biggest BTC mining hub. The state shut down 106 mining farms in the region and it is considering an additional mining tax based on the BTC price so that the country’s budget will benefit from the price appreciation. Iran which also hosts an outsized proportion of the hash rate is cracking down on unlicensed mining operations within its borders and the country faced similar blackouts issues and responded with a seasonal strategy to ensure miners don’t stress the grid as much.

Texas invited more miners to the state and governor Greg Abbott believes that the mining industry will bring more power generation facilities into the region which will help to stabilize the current weak grid.

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