Companies extracting cryptocurrencies in Kazakhstan Only surplus electricity is allowed on government controlled markets. The decision is accompanied by new legislation approved by lawmakers regulating the industry’s activities and the taxation of its profits.
Changes to Licensing Regulations, Law Regulating Cryptocurrency Mining in Kazakhstan
Majilis, Lower House of Kazakhstan’s Parliament, Adopts Bill “On Digital Assets in the Republic of Kazakhstan” Four related bills aimed at regulating mining and other cryptocurrency activities have been reported by local media.
In accordance with the law, domestically active miners may only purchase electricity from the national energy system if there is a surplus to provide, which is the national centralized electricity market. It can be purchased exclusively through his KOREM exchange.
Commenting on the new regime, Mazhilis member Ekaterina Smyshlyaeva of hers noted that the price cap on excess amounts of electricity had been lifted, and that, as cited by Tengriews, the deal would go to market. claimed to be governed by a mechanism.
The bill also introduces her two categories of mining licenses. The first type is given to entities that operate infrastructure such as data processing centers. They must meet specific equipment, location, and security standards.
The second is issued to mining hardware owners who rent space on cryptocurrency farms and do not charge energy quotas. Mining pools must comply with additional rules, such as the requirement that their servers be located in Kazakhstan and comply with local information security regulations, she added.
The Central Asian country has become one of the world’s leading crypto mining destinations since China cracked down on the crypto mining industry in 2021, but the influx of miners has They accuse it of widening power shortages. Mining farms in Kazakhstan will also be supplied with Russian power, according to a recent deal with Russia.
Cryptocurrency miners pay corporate tax according to reward value
The drafters of the law, which was approved at its first reading in October, are also thinking about taxation. Cryptocurrency mining companies are subject to corporate income tax calculated based on the value of digital assets received as compensation. Mining pools are subject to the same tax on fees.
Individuals conducting cryptocurrency transactions will pay a value-added tax (VAT), but the report clarified without disclosing details or exact tax rates. Corporations that provide crypto exchange services are also required to pay corporate tax.
Smyshlyaeva said that the circulation and exchange of cryptocurrencies is prohibited in Kazakhstan, and trading platforms are only available under a special legal regime of the Astana International Financial Center (AIFC). We said we could operate and we needed a license. It is issued by Financial Hub but does not have the tax benefits offered to other registered organizations.
The authorities also plan to ban advertising for cryptocurrency trading. At the same time, different regulations have been adopted for protected digital assets, similar to those that apply to securities. Permission to issue and distribute such assets is subject to the availability of collateral.
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