Kazakhstan Introduces Strict Crypto and Mining Legislations

• Whenever there is a surplus, miners may buy power from the public power grid.
• There is also a proposal to split mining licenses into two distinct types.

Several measures governing cryptocurrency mining in Kazakhstan have been enacted by the Kazakh legislature, including the “On Digital Assets of the Republic of Kazakhstan” bill. There will be new tax laws for cryptocurrencies, advertising for cryptocurrency transactions will be prohibited, and miners will be required to buy only power that is excess to their needs from the public grid.

Several measures pertaining to cryptocurrencies and four proposals to govern crypto mining in Kazakhstan, have been passed by the Mäjilis, the lower house of Parliament of Kazakhstan.

Tough For Miners Hereafter

Whenever there is a surplus, miners may buy power from the public power grid. In addition, the Kazakhstan Power and Power Market Operator (KOREM) exchange is the only place where miners may participate in electricity auctions, with the highest bidder receiving the supply.

There is also a proposal to split mining licenses into two distinct types. Owners of data processing facilities that meet all the necessary specifications for hardware, network connectivity, and physical security make up the first group of digital miners. The second kind are “digital miners,” who rent cells in data centers and make no energy claims.

Furthermore, additional crypto taxes have been established, such as a tax on crypto exchanges as legal businesses, a tax on miners, a tax on mining pools, and a value-added tax.

According to Ekaterina Smyshlyaeva, it is illegal to engage in cryptocurrency trading operations in Kazakhstan. To a limited extent, AIFC’s jurisdiction extends to crypto operations as part of a trial legal framework. In addition, there is a proposal to outlaw the promotion of cryptocurrency trading.