Bitcoin Mining Community Under Threat in Kazakhstan as Government Announces New Tax Requirement
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Last Thursday, Minister of National Economy Alibek Kuantyrov revealed in an official briefing that his department was developing a tax plan that would require miners to pay tax in amounts linked to the valuation of the mined tokens.
Kuantyrov argued, in the statement, that this new legislation would boost the nation’s tax collection and improve the state budget. That said, analysts have opined that this new law could be harmful to the mining community in Kazakhstan and could force many miners to consider migrating to other countries, like El Salvador, where tax requirements are less suffocating. The minister noted in the briefing:
“We are considering increasing the tax burden for miners at the moment. We are also considering linking the tax rate for miners to the value of the cryptocurrency. If the cryptocurrency grows, it will be good for the budget.”
Kazakhstan has slowly become less accommodating of the cryptocurrency industry as operating costs continue to rise. The nation went from being the crypto hub with one of the cheapest energy in the world to introducing a mining tax of 20 cents per kWh under a month.
Key Bitcoin Levels to Watch — April 17
Bitcoin has again dipped below the critical supporting trendline, as the primary cryptocurrency etched closer to $39K last week. At press time, BTC trades above the $40K psychological level but needs a leg up in the near term above the $41K pivot mark to re-emerge above the trendline.
The flagship cryptocurrency now faces a present risk of a bearish breakdown below the $39K area in the coming week. That said, a return to the upper-$41K zone puts it back on track for a $50K price tag snatch in April.
Meanwhile, my resistance levels are at $41,000, $42,000, and $43,000, and my key support levels are at $40,000, $39,000, and $38,000.
Total Market Capitalization: $1.88 trillion
Bitcoin Market Capitalization: $769.3 billion
Bitcoin Dominance: 40.8%
Market Rank: #1
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