Kazakhstan is a very advanced country when it comes to cryptocurrencies. Its cryptomining industry has even become one of the largest in the world. Only problem: it favors the shortage of electricity on the whole of the Kazakh territory. It is for this reason that the Kazakh parliament decided to take stronger measures. The main goal: to regulate crypto mining in Kazakhstan.
Crypto mining in Kazakhstan: what about new regulations?
Crypto mining has been legal in Kazakhstan since July 2022. According to current regulations, a company must:
- present a special license to be able to carry out digital mining in this country;
- obtain authorization to import mining equipment;
- inform the competent authorities of all planned activities.
Since 1er January this year, digital mining in Kazakhstan is also subject to a special tax. This tax is equivalent to 1 Kazakh tenge for 1 kilowatt hour of electrical energy consumed by mining.
What will the new legislation bring?
The federal parliamentary body of Kazakhstan recently read out a bill on digital assetss (including crypto). It’s about a second reading approved by the majority of parliamentary members.
According to this new law, only companies registered with the Astana International Financial Center or non-resident entities that have entered into agreements with authorized data centers will obtain authorization to mine crypto.
The new legislation also strengthens licensing measures. Concretely, it would be a matter of setting up new licensing regimes. They will depend on whether or not crypto miners operate their own facilities or if they rent from vendors.
This new law would also require crypto miners to buy their electricity on the shared grid at market rates through energy supplier Korem.
Due to the crackdown on the crypto industry in China, Kazakhstan has become a magnet for crypto miners. The result: a growing energy deficit. The parliament will have to solve this energy problem without harming the crypto mining industry which is proving extremely beneficial for the country.
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