The Majilis approve new crypto regulation bill in Kazakhstan

The Majilis have approved the new bill “On Digital Assets of the Republic of Kazakhstan” governing the regulation of crypto assets alongside four other crypto mining regulation bills in Kazakhstan.

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New crypto regulations in Kazakhstan. Again.

The Majilis approved the bill “On Digital Assets of the Republic of Kazakhstan”, as well as four related bills on the regulation of digital mining in Kazakhstan

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— Didar (@didar_bekbau) December 7, 2022

The proposed regulations in Kazakhstan regarding digital mining and the use of cryptocurrencies appear to be aimed at providing a more structured and controlled framework for the mining, and use of cryptocurrencies within the country.

The proposed measures include the introduction of licensing for digital miners, as well as new taxes on corporate income, and value-added tax for individuals conducting transactions with cryptocurrencies.

Additionally, the circulation of cryptocurrencies and the activities of crypto exchanges will remain prohibited on the territory of Kazakhstan, with such operations allowed only under an experimental legal regime with a license from the Astana International Financial Centre (AIFC).

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It is planned to introduce a ban on advertising of cryptocurrency transactions, and for secured assets a special procedure for its regulation has been introduced, by analogy with securities.

— Didar (@didar_bekbau) December 7, 2022

Ekaterina Smyshlyaeva, Deputy of the Majilis Committee on Economic Reform and Regional Development said:

“The bill, in addition to mandatory accreditation, introduces separate requirements for mining pools in terms of the location of their server capacities in Kazakhstan and compliance with information security rules,”

Miners will now be able to purchase electricity from the common power grid only in circumstances where there is a surplus and solely through the KOREM exchange.

In an auction for electricity where the highest bidder wins, only those most financially stable will ultimately gain access to the power grid’s surplus of electricity.

Furthermore, it is also proposed that a ban on advertising of cryptocurrency transactions be introduced.