Crypto Mining in Kazakhstan Hits the Slope of Regulation – In March 2022, Kazakh authorities have gone on the offensive in order to crack down on crypto miners illegally settled in the country. Kazakhstan has just taken a new step by establishing the beginnings of a regulation relating to crypto mining.
New regulations for crypto mining in Kazakhstan
On May 4, 2022, the Kazakh government issued a ministerial order according to which the crypto miners must register their activities with the authorities. This decree was signed on April 29, 2022 by the Government of Kazakhstan.
Thus, crypto miners will need to submit the following information for registration:
- Company and staff identification
- The energy consumed or that they plan to consume
- The IP addresses used
- Planned investments
- The location of the mining site
- A copy of the equipment’s customs declaration, or a document showing that they obtained the equipment legally
- Technical conditions for connection to the power supply
- The attestation that the persons involved in the activity are residents of Kazakhstan
- Other documents (more anecdotal)
Minors who decide to start their activity after May 4, 2022will have to record this information in the previous 30 days the start of mining activity. Furthermore, the minors already in activity will have to submit this information each quarter. They will also have to declare the number and type of mining rigs used, with the authorities. Finally, the cessation of mining activity must be declared to the authorities within the 10 days following this stop.
>> Easier than mining, buy your bitcoins on AscendEX (affiliate link) <<
The first step in regulating mining activities
Kazakhstan as a country with energy shortages and therefore Power cutshas been seeking since 2021 to stem the illegal mining phenomenon of crypto.
The President of the Kazakh Association of Blockchain and Data Center Industry, Alan Dorjiyev said that logging crypto mining activities was the first step “ towards official approval of the supply of electricity to legal mining data centers “.
Consequently, the next stage of Kazakh regulation relating to mining activities should focus on the licenses and to tax provisions.
Most likely, Kazakhstan will soon address the tax aspects of mining regulations, as there are currently many abuses. Indeed, last April the authorities noticed that several crypto mining companies had get tax reliefto which they were, in theory, not eligible.
Bitcoin mining is an increasingly strategic topic worldwide. On your side, do not let the train pass and join the movement! Register quickly on the famous AscendEX platform ! Plus you get a 10% discount on your trading fees! (affiliate link, see conditions on the official website)