The country’s lawmakers have approved the Crypto Assets Law “On Digital Assets of the Republic of Kazakhstan” and other laws focused on cryptocurrency mining. Mäjilis, or lower hours of the Kazakh Parliament, approved the four bills.
After the immigration of Chinese miners, Kazakhstan has emerged as one of the preferred destinations due to its cheap electricity. But with the cryptocurrency industry booming, lawmakers have come up with hostile measures against the industry.
Details of the five bills that introduce a new electricity purchasing system for mining equipment, as well as updated licensing and tax systems, were shared by Deidar Beckbauff, co-founder of Xive, a cryptocurrency mining solutions platform.
Miners will now be required to purchase excess electricity only from the public grid. Exclusive purchase of electricity through the operator of the electricity and energy market in Kazakhstan [KOREM] The exchange can also be done by miners. But not everyone will be able to make this purchase, as the electricity will be sold in the form of an auction – which means that the highest bidder wins.
The mining permit procedure is categorized into two parts. The first would involve digital miners who have the right infrastructure — data processing centers with the right equipment, location, and security requirements.
The second category is for digital miners – equipment owners who rent cells in data processing centers and do not claim a power share.
Ekaterina Smyshlyaeva, member of the Mäjili Committee for Economic Reform and Regional Development, commenting on the bill He said:
“The proposal, in addition to mandatory certification, imposes separate requirements for mining pools regarding the location of server capacity in Kazakhstan and compliance with information security rules.”
Crypto repression is inevitable?
New cryptocurrency taxes were also revealed that include provisions for miners, mining pool commissions, value-added tax, and taxes on cryptocurrency exchanges as business entities.
With the approval of the new rules, both individual miners and mining pools will be subject to corporate tax based on the value of the crypto assets as well as the pools commission rates. In addition, the board also wants to impose a general ban on advertising cryptocurrency transactions and design regulations for “cryptocurrency securities.”
Additionally, individuals who make crypto transactions will also be charged VAT along with corporate tax on cryptocurrency exchanges.
The latest development comes more than a month after Mäjili green-lit a bill that sought to put in place appropriate regulations within the domestic crypto sector. As such, mining companies and mining pools will fall under the Ministry of Digital Development, Innovation and Space.
Kazakh lawmakers after passing new bitcoin mining bills appeared first on CryptoPotato.