Kazakhstan to Introduce New Crypto Regulations Against Unlawful Mining Operations
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Kazakhstan New Crypto Regulations Mandate 75% Revenue Sale From Crypto Mining
A new law signed by Kazakh President Kassym-Jomart Tokayev on Feb. 6 reinstated the nation’s stand against the unlawful mining operations and issuance of crypto assets. Out of the two distinct legislations, the first requires the secured digital assets issuers to have the government’s permission.
The second legislation targets unsecured digital assets, typically earned through crypto mining operations. To reduce the possibility of tax evasion, crypto miners in Kazakhstan will require selling at least 75% of their revenue via registered crypto exchanges. This rule, which aims to collect “information on the income of digital miners and digital mining pools for tax purposes,” will be effective from January 1, 2024, to January 1, 2025.
Mining Licenses in Kazakhstan
All crypto mining licenses in Kazakhstan are issued for a limited period of three years — which differs based on whether or not the miner owns the mining facilities.
Alongside introducing the above laws, Kazakhstan launched the pilot of its central bank digital currency (CBDC) project — the “digital tenge.”
Previously, in Oct. 2022, Kazakhstan’s Astana Financial Services Authority (ASFA) granted Binance a permanent license to manage a digital asset platform and provide custody services.