Kazakhstan in talks on $700m in cryptocurrency mining projects

Kazakhstan is in talks to attract investments worth 300 billion tenge ($714 million) into the cryptocurrency sector, Digital Development Minister Bagdat Mussin said on Wednesday.

Kazakhstan claims to account for 6 per cent of global cryptocurrency mining.

The country passed legal amendments in June clarifying the regulation and taxation of cryptocurrency mining that it hopes will boost its oil-dominated economy, which can offer relatively cheap electric power for the energy-hungry business.

Thirteen “mining farms” are already operating in the Central Asian nation and four are under construction, Mussin told a government meeting.

“More than 80 billion tenge ($190 million) has been invested in the sector,” he said.

“Today we have preliminary agreements on attracting investments worth 300 billion tenge.”
Kazakh laws allow the mining of asset-backed cryptocurrencies and prohibit work with unsecured ones such as Bitcoin.
As Cointelegraph reported, Kazakhstan had established cryptocurrency tax regulations in 2019 in an attempt to support cryptocurrency-related activities. The tax regulation rendered earnings through crypto mining tax-free as long as the coins were not converted to fiat money.
The law also outlined that the Kazakh cryptocurrency mining firms were liable to taxes similar to data centers if they used their hardware to deliver cryptocurrency mining services to others.

Kazakhstan boasts one of the largest cryptocurrency mining facilities in the world. Based in Ekibastuz, near the Russian border, the Ekibastuz facility can host up to 50,000 mining rigs, according to sales director Dmitriy Ivanov.

Assuming full capacity with Bitmain’s AntMiner S19 series or MicroBT’s WhatsMiner M30, that would represent mining power of about 5-6 EH/s – approximately 4 per cent of bitcoin’s current hashrate.

Enegix already operates two mining facilities but the Ekibastuz site is its largest – it will employ upwards of 160 people, including engineers, electricians and security personnel.

The facility would handle as much electricity as needed to power 180,000 U.S. homes.

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