Kazakhstan’s rapidly growing crypto mining industry has the potential to pour $1.5 billion into the nation’s economy in five years, resulting in over $300 million in tax revenue, according to the National Association of Blockchain and Data Center Industry, which unites major companies involved in cryptocurrency extraction that account for 70% of the mining sector. Budget revenues can reach $400 million with the opening of cryptocurrency exchanges, the organization added.
Legal participants in the mining market bring Kazakhstan close to $230 million annually.
According to the association’s president, Alan Dordzhiev, even now, legal participants in the mining market bring to Kazakhstan 98 billion tenge (close to $230 million) annually. Quoted by the local business news portal Inbusiness.kz and the crypto news outlet Forklog, Dordzhiev also noted: The 98 billion figure is just the economic effect from companies officially engaged in mining activities. If we take into account “gray” miners, then this figure can easily double. I knew you would do good.
Crypto miners pay $30 million to the state-run power utility KEGOC for electricity.
The media reports further reveal that miners pay 13 billion tenge (over $30 million) to the state-run power utility KEGOC for electricity distribution and services provided by the Financial Settlement Center of Renewable Energy. Dordzhiev added that illegal mining operations consume around 500 megawatts (MW) of electricity. Data compiled by the mining industry association shows that registered crypto farms make around $310 million a year from their activities, two-thirds of which are being spent on the country’s electrical energy. While these revenues are welcome, the government in Nur-Sultan has recently also blamed a rising power deficit on crypto miners.