Kazakhstan plans to invest $700 million in the cryptocurrency mining industry.

According to a report by Reuters, Bagdat Mussin, the Minister of Digital Development of Kazakhstan, announced yesterday (2nd) that the government intends to invest $700 million in cryptocurrency mining projects and build four mining farms to further increase Kazakhstan's share in the global mining industry.

Kazakhstan Vigorously Promotes Mining Industry

At a government department meeting, Kazakhstan's Minister of Digital Development, Bagdat Mussin, revealed that Kazakhstan has currently invested $190 million in the field, with a total of 13 mines in operation. According to Bagdat Mussin, there are 4 more mines under construction.

Additionally, the department has successfully attracted $714 million in funds, planned to be injected into the cryptocurrency mining industry, which could significantly boost Kazakhstan's position in the global cryptocurrency mining industry. Bagdat Mussin claims that the country currently holds about 6% of the global cryptocurrency mining share, and this investment will further increase Kazakhstan's share in the global mining sector.

The reason for the government's strong support for the development of the cryptocurrency mining industry may be related to regulatory changes in Kazakhstan this year. Following a legal amendment in June that safeguarded the legal status of cryptocurrency mining, in August, the Ministry of Economy of Kazakhstan proposed a 15% tax on cryptocurrency mining, and authorities also plan to establish new electricity pricing rules for cryptocurrency mining. In other words, promoting the development of the cryptocurrency mining industry could bring in more tax revenue for the country.

Middle Eastern Governments Focus on Cryptocurrency Mining

Apart from Kazakhstan, countries in the Middle East such as Iran and Kyrgyzstan are also promoting the development of the cryptocurrency mining industry. In May this year, the Iranian government issued a license to the Turkish Bitcoin mining company iMiner, allowing the company to build mines in Iran and deploy 6,000 Bitcoin mining machines, making it the largest Bitcoin mining facility in Iran. In terms of Bitcoin hash rate, Iran ranks sixth globally, with about 3.82%.

On the other hand, Kyrgyzstan, located near Kazakhstan, is also promoting cryptocurrency mining and implementing a 15% tax regime. The government stated that the generated tax revenue will be used to combat the COVID-19 pandemic.