Authorities in Kazakhstan have found several businesses minting digital currencies that took advantage of tax cuts they were allegedly not supposed to benefit from. Auditors said the crypto firms registered as? innovative companies,? to receive millions of dollars in tax preferences.

Auditors in Kazakhstan have identified crypto mining enterprises that we're able to enjoy tax benefits normally offered to businesses engaged in innovations development. According to a representative of the country's Accounts Committee which oversees budget spending, this is an indication that the? Digital Kazakhstan? program is not being implemented properly.

The companies had become residents of the Astana Hub and received support for their investment projects in the field of cryptocurrency mining when this is not the main purpose of the tech park.

Ibraev revealed that five mining farms were granted tax preferences for 8.5 billion tenge ($18 million) in the third quarter of 2021. The official insisted they should not be entitled to the tax exemptions. ?The task of the hub is to attract and implement investment projects in IT technologies,? he pointed out.

It turns out, however, that the miners have not done anything against the current law. The Accounts Committee now proposes amendments to avoid such situations in the future. ?Based on the results of our audit, a recommendation was made to the government to improve the legislation in this area,? Ibraev added.