Digital asset miners in Kazakhstan have written an open letter to President Kassym-Jomart Tokayev asking for lower energy prices.
According to reports from local media sources, eight major mining firms penned their signatures to the letter as more miners suspend their activities in the country.
The letter was signed by representatives of the following firms: BCD Company LLP, TT TECH Limited Private Limited Company, KZ Systems LLP, AI Solutions LLP, Zhambyl branch of Kinur LLC, Green Power Solution Ltd. Private Limited Company, VerCom LLP and KINUR INVEST LLP amid wider calls from the Association of Blockchain and Data Center Industry in the country.
“Today, all the largest representatives of the industry have suspended their activities and plan to completely cease their business in the Republic of Kazakhstan by the end of the year.”
The country ranked third in terms of Bitcoin mining hashrate and miners are saddened that new regulation imposed by the government has changed the status quo.
Per the letter, the country lost its share of the global mining volume from 14% in 2022 to 4% in 2023 adding that if things stay this way, the mining industry will cease to exist.
“Without understanding the specifics and economic issues, as well as the cost of digital mining, a differentiated system was introduced in 2023 with a fee rate of up to 26 tenge/kWh, the detrimental effect of which essentially destroys the industry and does not allow digital miners to optimize their activities to reduce costs,” the letter reads.
The miners urged the President to review the policy because as things stand, miners can barely stay afloat resulting in a stagnant industry despite claims of being crypto-friendly.
Kazakhstan’s harsh crypto taxes
Miners in Kazakhstan have written to the president to review the present tax code and address their energy concerns.
Presently, they claim that 80% of the cost of digital assets is used for generating electricity alone leaving less room for survival in the wake of the declining asset prices and an upcoming Bitcoin halving.
The country’s mining woes began with the influx of miners to the country following the Chinese ban skyrocketing the demand for miners from 500 MW to 1,500 MW causing a strain on energy demands and leading to high taxes on the sector.
While the industry remains at crossroads, policy watchers hope for the government to meet the miners in the middle for the survival of “dying companies.”
Globally, virtual asset mining has come under the regulatory hammer in several countries as they continue to cite climate concerns and the impact on national electricity supply.
In the United States, the Biden administration proposed a 30% mining tax asking the industry to pay its “fair share”, a move widely criticized by miners, crypto executives, and the community.
Source: crypto news
The Best New Launches From Nécessaire, O Positiv, and More
Jacky Oh's Partner DC Young Fly Shares Their Kids' Moving Message
Carrie Underwood and Mike Fisher’s Sweetest Family Moments With 2 Sons
Erin Andrews dishes ‘little intel’ on how NFL WAGs feel about Travis Kelce-Taylor Swift romance
Team GB’s Olympic football dream heartbreakingly denied despite England win
5 Best Blue-Chip Stocks For 2024
Mama Minj’s Meaty Loaf Recipe Will Be Your New Winter Staple
44 Best Cyber Monday Mattress Deals You Can Shop in 2023
36 Cyber Monday Treadmill Deals to Shop Right Now 2023
Moment burned volcano survivors plead for help after getting caught in deadly eruption that claimed 11 lives and left 12 others missing
Prince William and Prince Harry’s Feud Thickens as Claims of William Being ‘Envious’ of His Brother Surface
The Asian Countries That Actually Need A CBDC
China’s next-gen air missile could decide a Taiwan war
Here are the latest odds of the Patriots landing the No. 1 pick in the 2024 NFL Draft
Ringo Starr Was Proud of This Reggae Song
News16 hours ago
Lawmakers ramp up scrutiny of Shein, call for proof it doesn’t use forced labor after retailer files for IPO
Lifestyle16 hours ago
Coach Outlet’s Holiday Gift Guide Has the Perfect Gifts for Everyone
Tech10 hours ago
Tesla whistleblower calls cars with Autopilot “experiments in public roads”
News10 hours ago
Caught red handed: Sherwin-Williams employee steals $47K in paint, Polk deputies say
Tech10 hours ago
Windows 10 gets three more years of security updates, if you can afford them
Finance9 hours ago
Li Auto’s Delivery Momentum Shows No Signs Of Slowing. Is The Stock Undervalued At $36?
Sport9 hours ago
Luton vs Arsenal LIVE: Gunners look to extend lead at top of the table
News10 hours ago
CVS Health lays out changes to clarify prescription drug pricing that may save some customers money