A new law that was signed by Kazakh President Kassym-Jomart Tokayev on February 6 reinstated the country’s stand against illegal mining operations and the issuance of cryptocurrency assets.
One of the largest Bitcoin (BTC) mining hubs, Kazakhstan, confirmed plans to introduce new cryptocurrency regulations to reduce the rate of tax fraud and unlawful business operations.
A new law that was signed by Kazakh President Kassym-Jomart Tokayev on February 6, 2023, reinstated the country’s stand against illegal mining operations and the issuance of cryptocurrency assets. Out of the two unique pieces of legislation, the first needs the secured digital assets issuers to have permission from the government.
Furthermore, these issuers will be subject to monitoring by the current law of the land:
“On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism.”
This law will enter into force from April 1, 2023.
The second regulation targets unsecured digital assets, normally earned via crypto mining operations. To minimize the possibility of tax evasion, the crypto miners in Kazakhstan will be compelled to sell nearly 75% of their revenue through registered crypto exchanges. That rule, which strives to collect “information on the income of digital miners and digital mining pools for tax purposes,” will become effective from January 1, 2024, to January 1, 2025.
All cryptocurrency mining licenses in Kazakhstan are issued for a short period of three years and differ according to whether or not the miner owns the mining facilities.
Apart from introducing the above laws, Kazakhstan introduced the pilot of its central bank digital currency project – the “digital tenge.”
Buy Bitcoin NowAlongside the National Bank of Kazakhstan, #Binance presented a bilateral report on the “State of the Digital Assets Industry and DeFi in Central Asia”.
The joint report provides an overview of crypto adoption, general trends of DeFi, and the local digital assets industry.
— Binance (@binance) February 3, 2023
In a report that was jointly published by the National Bank of Kazakhstan (NBK) and Binance crypto exchange, NBK deputy governor Berik Sholpankupov published about the bank’s vision of a “collaboration between traditional finance and DeFi,” mentioning:
“In Kazakhstan, we also started a practical R&D project to explore how our CBDC – Digital Tenge, can bridge the world of crypto with traditional fiat payments infrastructure.”
In the past, in October 2022, Kazakhstan’s Astana Financial Services Authority granted Binance a permanent license to manage a digital asset platform and offer custody services.
