Kazakhstan – Novelties In Crypto Mining Regulation.

President of the Republic of Kazakhstan, Mr Kassym-Jomart Tokayev ordered to bring crypto mining regulation in order. 
 

He states that the socio-economical effect of producing crypto in Kazakhstan is insufficient. Therefore, he ordered to identify all the mining farms and inspect tax and customs issues regarding them. Moreover, the authorised bodies have to carefully examine the technical conditions, the power purchase agreements, land specifications as well as other aspects of cryptominers’ activities.
 

It is well-known that the mining industry in Kazakhstan is poorly regulated. In addition, Kazakhstan has a low cost on electricity compared to other countries (approximately USD 0.035-0.05 for 1 kW/h), and the newly introduced tax on cryptomining is insufficient (approximately USD 0.002 per 1 kW/p). As the result, numerous crypto miners from foreign countries have entered the Kazakhstani market. 
 

All these favorable conditions for miners have led to a shortage of electricity, due to which enterprises do not work at full capacity, their productivity falls, and the state does not receive taxes. Also, some of the cryptominers do not conduct their activities on the principles of transparency and fairness, they conceal their income and do not pay all the due taxes. Those cryptominers are called “grey” or “black” miners.
 

Based on the abovesaid, the President has ordered to increase taxes on mining of the cryptocurrency and increase the socio-economical effect of producing crypto. Those are the positive trends that will help develop the legislation for cryptominers and create a crypto-friendly environment in Kazakhstan.