Kazakhstan, one of the world’s largest bitcoin (BTC) mining hubs, announced plans to introduce new crypto regulations aimed at reducing tax fraud and illegal business operations.
A new law signed by Kazakhstan President Kassym-Jomart Tokayev on February 6 restated the country’s stance against illegal mining operations and the issuance of crypto assets. Of the two separate legislations, the first requires government permission to issuers of secured digital assets.
In addition, such issuers will be subject to monitoring in accordance with the current legislation of the country – “On combating the legalization (laundering) of proceeds of crime and the financing of terrorism.” The law will come into effect from April 1, 2023.
The second law targets unsecured digital assets, typically acquired through crypto mining operations. To reduce the potential for tax evasion, crypto miners in Kazakhstan will be required to sell at least 75% of their revenue through registered crypto exchanges. The rule, which aims to collect “information on the income of digital miners and digital mining pools for tax purposes,” will take effect from January 1, 2024, to January 1, 2025.
All crypto mining licenses in Kazakhstan are issued for a limited period of three years – which varies depending on whether the miner owns the mining facilities.
Related: Kazakhstan Among Top 3 Bitcoin Mining Destinations After US and China
Simultaneously with the introduction of the above laws, Kazakhstan launched the pilot of its central bank digital currency (CBDC) project – “Digital Tenure”.
With the National Bank of Kazakhstan, #binance Presented a bipartite report on “The State of the Digital Assets Industry and DeFi in Central Asia”.
The joint report provides an overview of crypto adoption, general trends in DeFi, and the local digital asset industry.
– Binance (@binance) February 3, 2023
In a report published jointly by the National Bank of Kazakhstan (NBK) and crypto exchange Binance NBK deputy governor Berik Sholpunkupov wrote about the bank’s approach to “cooperation between traditional finance and DeFi”:
“In Kazakhstan, we have also launched a practical R&D project to explore how our CBDC – Digital Tange, can bridge the world of crypto with traditional fiat payment infrastructure.”
Earlier, in October 2022, Kazakhstan’s Astana Financial Services Authority (ASFA) granted Binance a perpetual license to manage a digital asset platform and provide custody services.