Kazakhstan to mandate 75% revenue sale from crypto mining for tax purposes
A new law signed by Kazakh President Kassym-Jomart Tokayev on Feb. 6 reinstated the nations stand against the unlawful mining operations and issuance of crypto assets. 3034 Total views 14 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT Kazakhstan, one of the worlds biggest Bitcoin (BTC) mining hubs, announced plans to introduce new crypto regulations to reducetax fraud and unlawful business operations.
A new law signed by Kazakh President Kassym-Jomart Tokayev on Feb. 6 reinstated the nations stand against the unlawful mining operations and issuance of crypto assets. Out of the two distinct pieces oflegislation, the first requires the secured digital assets issuers to have the governments permission.
Moreover, such issuers will be subject to monitoring by the existing law of the land On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism. The law will enter into force from April 1, 2023.
The second legislation targets unsecured digital assets, typically earned through crypto mining operations. To reduce the possibility of tax evasion, crypto miners in Kazakhstan will be forced to sell at least 75% of their revenue via registered crypto exchanges. This rule, which aims to collect information on the income of digital miners and digital mining pools for tax purposes, will be effective from Jan. 1, 2024, to Jan. 1, 2025.
All crypto mining licenses in Kazakhstan are issued for a limited period of three years and differ based on whether or not the miner owns the mining facilities.
Related: Kazakhstan among top 3 Bitcoin mining destinations after US and China
Alongside introducing the above laws, Kazakhstan launched the pilot of its central bank digital currency (CBDC) project the digital tenge.
Alongside the National Bank of Kazakhstan, #Binance presented a bilateral report on the State of the Digital Assets Industry and DeFi in Central Asia.
The joint report provides an overview of crypto adoption, general trends of DeFi, and the local digital assets 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 banks vision of a collaboration between traditional finance and DeFi, adding:
In Kazakhstan, we also started a practical R&D project to explore how our CBDC Digital Tenge, can bridge the world of crypto with traditional fiat payments infrastructure.
Previously, in October 2022, Kazakhstans Astana Financial Services Authoritygranted Binance a permanent license to manage a digital asset platform and provide custody services. #Cryptocurrencies #Mining #Law #Adoption #Bitcoin Mining #Kazakhstan #Regulation
Add reaction
Add reaction Related News What is impermanent loss and how to avoid it? Kraken staking ban is another nail in cryptos coffin and thats a good thing Complaint filed against Compass Mining for losing BTC mining machines hits snag BlockFi to sell $160M in Bitcoin miner-backed loans: Report The history of mining: From the stone age to the digital era
