Kazakhstan intends to put in place a clear legal framework from 2024 for the regulation of bitcoin and other digital currencies. Indeed, the Legislative Assembly of Kazakhstan has just given its approval for five new bills to regulate the cryptocurrency market.
Kazakhstan wants to control the crypto market
Kazakhstan’s lower house of parliament has passed five bills that relate to cryptocurrencies. An adoption that allows Kazakhstan to extend its hold on the cryptocurrency market in general and on crypto mining in particular.
The biggest objective of this legal framework is to impose rules for the creation of crypto trading platforms and authorized crypto exchanges for digital assets.
Admittedly, this legal framework will make it possible to support the exchange platforms that already exist and operate in Kazakhstan. However, it should be noted that this regulation will also benefit the state of Kazakhstan.
Indeed, Kazakhstan has planned to force cryptocurrency miners to exchange at least 75% of their mining income on authorized platforms from 2024. Better still, the government of Kazakhstan plans to directly tax mining pools.
It will be the same for platforms that will pay fees. With particular regard to companies that exploit digital currencies, they too will be taxed, which was not the case until now.
Indeed, these mining companies only pay the taxes imposed on their consumption of electrical energy. Thus, these taxes they pay are based on the amount and price of energy used to mine cryptocurrencies.
Apart from this current legal framework, it should be added that Kazakhstan is one of the countries that are very active in the cryptocurrency market. The best example is the Memorandum of Understanding signed between the Financial Monitoring Agency of Kazakhstan and Binance.
So, just after the signing of this Memorandum of Understanding between the two parties, Binance made an important announcement. Indeed, the company announced that it had obtained a license to deploy its financial services in the country.
A very promising initiative in Kazakhstan
It is true that the initiative is still under development. However, it should be emphasized that it will be beneficial for all parties.
Indeed, according to Ms. Smyshlyaeva, a good part of this bill will be dedicated to the production and circulation of secured and unsecured virtual currencies.
It should also be added that Kazakhstan wants to put in place guidelines for electricity consumption, is about cryptocurrency mining. This legal framework would give full power to the Ministry of Energy.
Thus, this ministry will be able to provide volume-based energy quotas according to the needs of the electricity network. Finally, the bill will also open up additional opportunities to attract foreign investment.