Kazakhstan Continues Bitcoin Mining Regulation — Bitcoin Magazine

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Kaza­khstan is mov­ing for­ward with reg­u­la­tion that will fur­ther sti­fle its bit­coin min­ing industry.

The country’s fed­er­al par­lia­men­tary body has com­plet­ed sec­ondary approval of a bill “On Dig­i­tal Assets in the Repub­lic of Kaza­khstan.” With a third approval, the leg­is­la­tion will intro­duce new licens­ing require­ments for bit­coin min­ers based on their facil­i­ty own­er­ship and oper­a­tional struc­ture. It would also require that min­ers pur­chase their elec­tric­i­ty from the ener­gy provider Korem at mar­ket rates. 

Pre­vi­ous­ly, spe­cif­ic report­ing and tax require­ments were imple­ment­ed, includ­ing reg­is­tra­tion of names, loca­tions and quar­ter­ly reports to the gov­ern­ment. These occurred as a result of the major influx of min­ing amidst ener­gy short­ages and protests, all while bit­coin min­ers fled Chi­na as a response to the government’s ban­ning of bit­coin.

Kazakhstan’s close prox­im­i­ty to Chi­na and pre­vi­ous­ly high­ly favor­able ener­gy access led to the large amounts of hash rate migrat­ing to the coun­try. After­wards, Kaza­khstan went as far as seiz­ing up to $200 mil­lion in min­ing equip­ment who did not com­ply with reg­u­la­tion, and the coun­try con­tin­ues to try and absorb the ben­e­fits of the influx in bit­coin min­ing using leg­is­la­tion like this most recent­ly approved bill. 

Bit­coin Mag­a­zine pre­vi­ous­ly report­ed on reg­u­la­tion in Kaza­khstan, cit­ing a report from the Russ­ian media out­let Tass. In the report, Eka­te­ri­na Smyshlyae­va, a mem­ber of the Com­mit­tee on Eco­nom­ic Reform and Region­al Devel­op­ment of the Majilis (Kazakhstan’s fed­er­al par­lia­men­tary body) detailed the government’s inten­tions, describ­ing how, “Kaza­khstan was used as a raw mate­r­i­al appendage of the blockchain indus­try. [Through] bills, we oblige min­ers to license in Kaza­khstan, that is, to cre­ate legal enti­ties and become full-fledged sub­jects of taxation.” 

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