According to reports, the lower house of the Kazakh parliament, Mazhilis, has approved new bills that aim to establish appropriate rules in the local crypto sector.
They will require miners to create licensed entities, register with regulators and continue to be taxed.
Solving the problem with ‘grey miners’
Despite being a world leader in cryptocurrency mining, Kazakhstan has some problems with so-called “grey miners” who run their operations without the necessary licenses.
Recent coverage reported that the lower house of parliament passed five new bills that could fix those problems.
Ekaterina Smyshlyaeva, a member of the Committee for Economic Reform and Regional Development, explained that the legislation will force crypto miners to receive authorization from relevant financial regulators, create legal entities, and become “full-fledged tax subjects.”
“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,” it added.
The new framework, assuming it is official, will impose full taxes on the import of cryptocurrency mining equipment. It will also require miners to trade up to 75% of their capital on local crypto platforms starting in 2024.
“By transferring all cryptocurrency transactions to Kazakhstan exchanges, we make them transparent. Crypto exchanges are subject to financial monitoring and, according to the project, will be integrated with the information systems of the State Revenue Committee.
The introduction of a registry of mining equipment will exclude the operation of illegal data centers and the granting of licenses will finally solve the problem of gray miners, guarantee the security and balance of the energy system.”
According to estimates, more than a million residents of the Central Asian country handle digital assets on international exchanges. The ruling body plans to bring them all to the local trading venues.
Different tax rates for crypto miners from Kazakhstan
Several months ago, the President of Kazakhstan, Kassym-Jomart Tokayev, signed a bill requiring domestic cryptocurrency miners to pay higher tax rates than other consumers. The exact percentage depends on the average price of electricity used when mining digital assets.
The legislation has a green focus, as miners using renewable energy are subject to the lowest tax rate.
It is worth noting that Kazakhstan has made a name for itself in the digital asset space by being among the leading nations in terms of bitcoin mining. It accounts for 13.2% of the global hash rate, second only to the US (37.8%) and China (21.1%).
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This post Kazakhstan Wants More Regulations for Crypto Miners With New Bill (Report)
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