Under the Digital Assets Bill, Kazakhstani cryptocurrency miners will only purchase surplus power

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In Kazakhstan, businesses that harvest cryptocurrency will only be permitted to buy extra electricity on a market that is regulated by the government.

Kazakhstan to Enact Law to Control Crypto Mining and Modify Licensing Procedures

The bill “On Digital Assets of the Republic of Kazakhstan” and four related draft laws, which seek to regulate mining and other crypto-related activities, have been approved by Kazakhstan’s lower house of parliament, the Mazhilis, according to local media.

According to the law, power generated by the nation’s energy system will only be available to miners operating there if there is a surplus to sell, and only through the KOREM exchange, the nation’s centralized electricity market.

Ekaterina Smyshlyaeva, a member of the Mazhilis, commented on the new administration and insisted, as reported by Tengrinews, that trades will be governed by market mechanisms. She noted that price restrictions had been lifted for the excess amount of electricity.

According to Smyshlyaeva, mining pools will also be subject to extra requirements, such as the need for Kazakhstan-based servers and adherence to national information security laws.

Miners of cryptocurrency must pay corporate taxes on their rewards’ value.

Companies that engage in cryptocurrency mining will be subject to corporate income tax, which is determined by the value of the digital assets received as compensation.

The study stated that anyone who conduct bitcoin transactions will be required to pay value added tax (VAT), but it did not go into further detail or provide specific rates.

Companies that provide cryptocurrency trading services must also pay corporate tax.

The circulation and exchange of cryptocurrencies are forbidden in Kazakhstan, according to Smyshlyaeva, who also noted that trading platforms can only operate under the unique legal framework of the Astana International Financial Center (AIFC), with a license granted by the financial hub but without the tax advantages provided to other registered organizations.

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