Kazakhstan Formulated First Draft Legislation On Cryptocurrency Mining
Table of contents
Introduction of First Draft Legislation
Smyshlyaeva introduced the proposed legislation. Normative-legal acts are needed to control crypto mining within Kazakhstani territory. The legislation of crypto mining, along with the lack of additional regulation of cryptocurrency manufacturers, has resulted in the unregulated growth of the energy consumption business.
The reporting process for the beginning of operations in the sector of cryptocurrency mining is currently regarded as voluntary and governed by an order from the Minister of Digital Development. In the state body's registration today, just one-third of mining businesses are voluntarily listed.
Danger to Power Stability
The deputy pointed out that the country's electricity stability is at risk by the uncontrolled power consumption by "gray" miners, who are responsible for its scarcity. Furthermore, according to E. Smyshlyaeva, Kazakhstan considers the legal crypto mining sector a large-scale investment business that generates additional tax income and helps the country's IT sector grow.
Development of Cryptocurrency Ecosystem
The creation of a cryptocurrency ecosystem on Kazakhstani territory is another reason for the Normative-legal acts. The existing regulation in Kazakhstan restricts the circulation of unstable digital assets, such as cryptocurrency. Within the scope of the first proposal, the International Financial Center is the only place where cryptocurrency operations, including mining and exchange operations, are conducted. The deputy said this operation is not under the Astana International Financial Center Constitutional Law governance.
Kazakhstan Ready for Crypto Legislation
According to yesterday's report by the local news agency, Informburo, President Kassym-Jomart Tokayev stated that Kazakhstan is prepared to legalize a system for changing cryptocurrencies to cash if needed. Tokayev emphasized during his speech at the international conference Digital Bridge 2022 that Kazakhstan wants to lead the world in digital technology, the cryptocurrency ecosystem, and controlled mining.