Kazakhstan government collected $1.5 million in fees from Bitcoin miners. This is the second-largest mining country in the world now.
Bitcoin mining faced a huge refresh last summer as the Chinese government banned crypto.
Local miners flew to the nearest countries with the most appropriate work conditions and the lowest electricity prices.
One of these countries is Kazakhstan which recently joined the list of BTC mining world centers.
As a lot of miners often use illegal power connections or prefer not to pay taxes, the Kazakhstan gov says their miners are helping the economy.
At least for now.
Fees for miners in Kazakhstan
According to the State Revenue Committee of Kazakhstan’s Ministry of Finance, Bitcoin mining revenues flowed in from 12 different regions of the country.
And for the first quarter of the current year alone the crypto mining companies paid out approx $1.5 million in fees to the state treasury.
Kazakh crypto market became open late in 2019, as the value of Bitcoin plummeted, and the local government welcomed miners.
Despite the fact that crypto isn’t legal in Kazakhstan, miners’ businesses were promoted. Especially because of cheap electricity and a lack of regulation.
Today Kazakh miners should pay $0.0024 per kilowatt on the 20th day of each quarter’s final month. Parliament is currently discussing this fee.
As for now, Kazakhstan makes around 13.3% of the global BTC mining hash rate, which is less than US miners, but more than miners in Russia and Canada.
Illegal China mining
According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), China became the second-largest Bitcoin hash rate provider as of January 2022.
That means China miners are working illegally as their government banned crypto operations.
The Index says China still hosts 21,1% of the total global Bitcoin hash rate, as The United States is leading the Bitcoin mining market with 37,8% of the total hash rate.
China BTC’s hash rate power was more than 75% in 2019, as it soared to 0% in July and August 2021. Bitcoin miners in China do surge right now, although they are far from former heights.
The CBECI also shows Kazakhstan is the third biggest BTC mining country with a hash rate of around 13,2%.
The 9% of the global BTC hash rate is in undefined locations.