Kazakhstan’s propensity toward cryptocurrencies was made clear by the country’s multiple partnerships with Binance, the world’s largest crypto exchange. In light of the government’s growing interest in Bitcoin [BTC] and similar cryptocurrencies, new restrictions are being introduced.
Tass, a major Russian news outlet, has reported that the Kazakh government plans to implement a legal framework for cryptocurrencies like Bitcoin. The Majilis of Kazakhstan, the country’s lowest house of parliament, is said to have passed five crypto-related measures.
Elaborating on the proposals, Ekaterina Smyshlyaeva, a member of the Mazhilis Committee on Economic Reform and Regional Development said,
“They were developed in pursuance of the instructions of the head of state on the problems of legal regulation of digital mining. The purpose of the bills is also to create a legislative framework for the production and circulation of secured and unsecured digital assets.”
The bills were created based on the President Kassym-Jomart Tokayev’s directions, as Smyshlyaeva indicated. The new government action was motivated by the absence of a framework regulating the region’s cryptocurrency sector.
Bitcoin mining under the spotlight :
The Bitcoin mining industry was destroyed following China’s massive crypto takeover. The Chinese government’s anger fell upon the largest mining companies.
While some closed their doors, a few others relocated to other countries. Kazakhstan gradually became the center for Bitcoin mining.
But many miners left because of the upheaval in the country. The mining industry was blamed by Kazakhstan’s energy ministry for power outages and rising electricity demand. Kazakhstan was now implementing rules overseeing the same in an effort to repair its relationship with miners.
Smyshlyaeva further noted,
“Support for their activities will be carried out through the introduction of a mandatory requirement for miners to exchange up to 75% of their capital on domestic crypto exchanges starting from 2024.”
It should be mentioned that the most recent action taken by the Kazakh government included tax legislation. The parliament plans to levy corporate income tax on mining pool income, mining pool compensation, and fees for transactions made on cryptocurrency exchanges.
