A new law has come into force in Kazakhstan expanding the regulatory framework for cryptocurrency miners and limiting their access to cheap electricity. The legislation introduces a mining licensing regime with two different categories of licenses that companies will be required to renew periodically.
President Tokayev signed a law regulating the mining and exchange of crypto assets in Kazakhstan
law The “On Digital Assets in the Republic of Kazakhstan”, signed by President Kassym-Jomart Tokayev, entered into force on Monday. The main purpose of the new legislation, adopted along with amendments to other legislative acts, such as the Tax Code, is to regulate the activities associated with the issuance and circulation of these assets, primarily mining.
The changes are also aimed at creating conditions for the development of the crypto industry and fair competition between market participants, according to local media. The Digital Assets Act, passed by Parliament in late January, defines the powers of state bodies overseeing the sector and introduces the licensing of cryptocurrency miners and exchanges, replacing the current registration system.
Mining licenses will be issued for a period of three years to two groups of applicants. Entities that own mining infrastructure such as data centers that meet certain standards in terms of hardware, location and security fall under the first category. The second is for those who own mining equipment but rent space on crypto farms and do not apply for energy quotas directly.
A separate set of requirements has been introduced for mining pools. They must have hardware and software installed in Kazakhstan and must comply with the country’s information security regulations and other applicable regulations.
In addition, cryptocurrency miners will only be allowed to buy electricity from the national grid if there is a surplus and exclusively from the state-controlled centralized exchange KOREM. However, price restrictions on this energy will be removed, and trade will be carried out on market principles.
Cheap subsidized electricity was one of the factors that attracted mining companies to Kazakhstan after China cracked down on the industry in 2021. sector, including the temporary shutdown of registered facilities and the closure of illegal farms. On January 1, a higher electricity surcharge was introduced for authorized miners.
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Credit : news.bitcoin.com
