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Crypto Miners Required to have Licences in Kazakhstan Now

Kazakhstan is quite a hub for cryptocurrency miners, and hence, the government there is considering making mining licenses compulsory. On Wednesday, October 12, the measure was introduced in the Mazhilis, the lower house of Kazakhstan’s parliament.

TASS stated that one of the five legislations presented by the parliamentarians regulates the crypto sector. The bill aims to provide a legal structure for the creation and dissemination of digital assets. The measures being taken are an attempt to mend the problems with legal regulation of digital mining.

The Kazakh government is planning to levy legislative procedures to regulate the electricity usage of cryptocurrency miners, according to Ekaterina Smyshlyaeva, a Member of the Mazhilis Committee on Economic Forum. The Energy Ministry too will put limitations based on total energy use.

The deputy went on to say that the laws would allow new chances to flow and the attraction of investments for the construction of new energy-generating facilities. Furthermore, Smyshlyaeva added that non-locals used cloud services for mining operations in the past.

The deputy stated that Kazakhstan was used by the blockchain industry as a raw material appendage. Bills will oblige miners to be licensed in Kazakhstan to create legal entities and become the subjects of taxation entirely. Mining pools are now becoming part of the economy. These bills will connect the production and circulation of digital assets, helping them become one ecosystem. Along with it, the activities of miners and mining pools will be regulated and licensed by the Ministry of Digital Development, Innovation, and Aerospace Industry.

The new license system is accompanied by a new taxation mechanism for crypto miners in the country. From 2024, cryptocurrency miners will exchange about 75% of their funds on local cryptocurrency markets.