Bitcoin mining in Kazakhstan: from dream to nightmare

Live mining – Kazakhstan’s legislators approve draft laws, which impose new obligations on minors in the country. Mining regulations are changing So. However, it does not necessarily go in the direction of the interests of the actors of the sector.

Electricity for BTC Miners Strictly Regulated in Kazakhstan

The lower house of the parliament of Kazakhstan has passed five bills, one of which is “On digital assets of the Republic of Kazakhstan”. The other four regulate the mining of cryptocurrencies in the country.

The new provisions that lawmakers have approved introduce restrictions for minors. One of them indicates that the latter cannot buy electricity on the common network, except in case of excess.

New cryptocurrency mining laws in Kazakhstan
Publication by Didar Bekbauov, co-founder of the platform for minors Xive – Source: Twitter

In addition, these purchases can only be made via an auction on the stock exchange of the Kazakhstan electricity and energy market operator (KOREM).

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Different regulatory licenses depending on the level of vertical integration

The bills also specify licensing rules for minors. Within this framework, legislators in Kazakhstan have introduced two types of regulatory authorization.

The first is for miners who have the appropriate infrastructure for their activities. The second is aimed at players in the sector who use the services of data processing centers, and who do not have no need for an energy quota.

Cryptocurrency taxes for miners in Kazakhstan: the end of a preferential regime

The lower house of Parliament also wants to fill the coffers of the State by using mining. Legislators have introduced dues and taxes for miners and mining pools.

For mining companies, the value of this tax is calculated based on the price of cryptocurrencies at the time of obtaining them as block rewards. For mining pools, the tax is calculated from the commission charged for the services these companies provide.

In addition to these two taxes, from now on, miners will also have to pay a tax as commercial entities, whereas before, they benefited from a preferential tax regime of the Astana International Financial Center (AIFC).

Kazakhstan is therefore not or would no longer be a paradise for minors Bitcoin (BTC), especially for those who sought refuge there after China banned cryptocurrency mining from its territory. Mining companies must comply with the new regulatory provisions, under penalty of sanctions. The Kazakh authorities have already demonstrated their willingness to fight against illegal mining in the country in the past.

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