Kazakhstan Mandates Licenses For Crypto Miners

Kazakhstan Mandates Licenses For Crypto Miners
  • The measure was presented in the lower house of Kazakhstan’s parliament.
  • With the new license system comes a new taxation mechanism for crypto miners.

One of the most popular places for cryptocurrency miners to set up shop is Kazakhstan, which is why the government there is considering making mining licenses compulsory. On Wednesday, October 12, the measure was presented in the lower house of Kazakhstan’s parliament, the Mazhilis.

According to TASS, parliamentarians have presented five legislation, one of which regulates the cryptocurrency sector. Moreover, the bill’s goal is to provide a legal structure for the creation and dissemination of digital assets. Additionally, these measures are an attempt to fix the problems with digital mining’s legal regulation.

According to Ekaterina Smyshlyaeva of the Mazhilis Committee on Economic Reform, the Kazakh government is planning to implement legislative procedures to regulate the power use of cryptocurrency miners. Moreover, the Energy Ministry will also establish limits based on total energy use.

New Policies Expected

Furthermore, the deputy continued, saying that the laws would allow for the opening of new chances and the attraction of investments for the construction of new energy-generating facilities. Furthermore, Smyshlyaeva also said that non-locals used cloud services to conduct mining operations in the past.

Smyshlyaeva stated:

“Kazakhstan was used as a raw material appendage of the blockchain industry. By bills, we oblige miners to be licensed in Kazakhstan, that is, to create legal entities and become full-fledged subjects of taxation. Mining pools are also becoming part of the economy. Bills provide a connection between the production and circulation of digital assets in one ecosystem. At the same time, the activities of miners and mining pools will be regulated and licensed by the Ministry of Digital Development, Innovation and Aerospace Industry”.

With the new license system comes a new taxation mechanism for crypto miners in Kazakhstan. Moreover, beginning in 2024, cryptocurrency miners will be required to exchange as much as 75% of their funds on local cryptocurrency markets.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.