Kazakhstan to mandate 75% revenue sale from crypto mining for tax purposes
Kazakhstan, one of the largest bitcoin (BTC) mining hubs in the world, has announced plans to introduce new cryptocurrency regulations aimed at reducing tax fraud and illegal business transactions.
The new law, signed by Kazakh President Kassym-Jomart Tokayev on February 6, restored the country’s stance against illegal mining and issuance of crypto assets. From two different lawsthe former requires issuers of secure digital assets to have government approval.
At the same time, such issuers will be subject to monitoring in accordance with the current law land – “On counteracting the legalization (laundering) of proceeds from crime and the financing of terrorism.” The law will come into force on April 1, 2023.
The second legislation targets insecure digital assets typically obtained from cryptocurrency mining operations. To reduce the possibility of tax evasion, crypto miners in Kazakhstan will require the sale of at least 75% of their income through registered crypto exchanges. This rule, which aims to collect “information about the income of digital miners and digital mining pools for tax purposes”, will be effective from January 1, 2024 to January 1, 2025.
All cryptocurrency mining licenses in Kazakhstan are issued for a limited three-year period, which depends on whether the miner owns the mining equipment.
Kazakhstan is one of the top three countries for bitcoin mining after the US and China
Along with the introduction of the above laws, Kazakhstan has launched a pilot project of its central bank for digital currency (CBDC) – “digital tenge”.
Along with the National Bank of Kazakhstan, #Binance presented a bilateral report “The State of the Digital Asset Industry and DeFi in Central Asia”.
The joint report provides an overview of cryptocurrency adoption, general DeFi trends, and the local digital asset industry.
— Binance (@binance) February 3, 2023
In a report jointly published by the National Bank of Kazakhstan (NBK) and crypto exchange Binance, NBK Deputy Governor Berik Sholpankupov wrote about the bank’s vision for “collaboration between traditional finance and DeFi”, adding:
“In Kazakhstan, we have also launched a hands-on research and development project to explore how our CBDC, the digital tenge, can connect the world of cryptocurrencies with the traditional fiat currency payment infrastructure.”
Previously, in October 2022, the Astana Financial Services Authority (ASFA) of Kazakhstan granted Binance a permanent license to operate the digital asset platform and provide custody services.
Credit : cointelegraph.com