The Kazakh government has revised the registration requirements for individuals and companies engaged in cryptocurrency mining. The updated rules came amid an ongoing crackdown on the industry in the Central Asian nation, where the influx of miners has been caused by a persistent shortage of electricity.
Cryptocurrency miners must file quarterly reports with Kazakh authorities
An order from Kazakhstan’s Minister of Digital Development Baghdat Musin expanded the registration and reporting requirements for digital coin miners. The document obliges individual entrepreneurs and legal entities intending to mine cryptocurrency to notify regulatory authorities at least 30 days before starting their activities. The same applies to firms and individuals providing services to such businesses.
Cryptocurrency miners will now be required to provide certain details, including the name, registration number and contact information of their companies, as well as bank details and IP addresses. They will also be required to provide the energy needs of their mining operations, planned investments, and number of employees.
Among the required documents are copies of customs declarations or other evidence of ownership of the mining equipment, documents confirming that the individuals involved in the venture are residents of Kazakhstan, information on the location of the mining facility in the country, and a technical description of how the equipment will be connected to the power grid.
Miners who have already started operations and their maintenance providers are required to file similar reports with the government each quarter. In addition, miners who have ceased operations will be required to notify the government within ten days of ceasing operations.
The new reporting requirements come as Nur-Sultan authorities are tightening their grip on the crypto mining industry, a year after Kazakhstan became a magnet for miners amid China’s offensive on the sector. The government is cracking down on illegal miners, but even authorized bitcoin farms are suffering from power outages caused by growing electricity shortages.
The deficit has already forced some companies to leave the country, while dozens of mining facilities have been shut down this year, and many remain de-energized. Auditors are also trying to close tax loopholes exploited by some miners, while authorities are preparing to increase the tax burden for those who remain in Kazakhstan and intend to tie the tax to the value of the mining digital currency.
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