Kazakhstan Proposes New Crypto Regulations for Miners and Digital Assets

New Regulations for Crypto Miners

Kazakhstan has introduced a draft bill that mandates cryptocurrency miners to trade exclusively on domestic exchanges starting from 2024. This move is part of a broader effort to establish a legal framework for digital assets in the country. The bill also proposes the imposition of various taxes on miners' earnings, including corporate income tax, mining pool income tax, and cryptocurrency operating fees.

Tax Implications and Legal Requirements

The legislation extends beyond existing taxes, such as equipment import VAT and digital mining fees per kilowatt. Miners will now be required to form legal entities and become formal tax subjects. This shift aims to bring greater transparency and accountability to the cryptocurrency sector in Kazakhstan.

Focus on Digital Asset Regulation

The draft bill addresses both the production and circulation of secured and unsecured digital assets. It also introduces guidelines for electricity usage in mining activities, enabling the Ministry of Energy to allocate quotas based on grid requirements. This measure is expected to optimize energy consumption and promote the development of renewable energy sources.

Implications for the Crypto Scene

Kazakhstan's crypto scene has shown positive momentum, with Binance recently receiving approval to establish its headquarters in the country. President Kassym-Jomart Tokayev has expressed strong support for cryptocurrencies, signaling a favorable environment for digital asset innovation and investment. The new regulations are expected to further attract investments in infrastructure, particularly in renewable energy, positioning Kazakhstan as a key player in the global crypto market.