In the first quarter of 2022, the Kazakh government received 652 million Kazakh tenge ($1.5 million) in revenue from bitcoin miners. This figure was significantly lower than expected, mostly due to the authorities’ closure of mining companies across the country since late last year.
According to a report by the State Revenue Committee of Kazakhstan’s Ministry of Finance, bitcoin mining fees came from 12 regions of the country. The main payers of these fees were just three companies: AISolutions, Agro Energy and BCD Company.
In Kazakhstan, bitcoin miners are required to pay the government for electricity under legislation that took effect Jan. 1, 2022. On the 20th day of the last month of each quarter, miners must pay exactly 1 tenge ($0.0024) for each kilowatt/hour of electricity spent.
It is noted that the expected payments for the first quarter have not reached the budget because most of the miners have been disconnected from electricity for more than six months. This comes as part of “energy security,” as cryptocurrency mining apparently put a strain on the country’s power grid.
Although mining still consumes a tiny fraction of the world’s energy, much of the capacity is located in Kazakhstan. The country is home to fewer than 19 million people, but according to the latest data, it accounts for 13.22 percent of the world’s hash rate, making it the third-largest bitcoin mining hub.