On Feb. 6, Kazakh President Kassym-Jomart Tokayev approved a legislation banning illegal mining and crypto asset issuance.
Kazakhstan, one of the largest Bitcoin mining centres, revealed intentions to establish new crypto legislation to reduce tax fraud and illegal company operations.
On Feb. 6, Kazakh President Kassym-Jomart Tokayev approved a legislation banning illegal mining and crypto asset issuance. The first of the two laws needs government approval for secured digital asset issuers.
The statute “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism” will also oversee such issuers. The law takes effect April 1, 2023.
The second law targets unsecured crypto mining assets. Kazakhstani crypto miners must sell 75% of their earnings through licensed crypto exchanges to avoid tax avoidance. This rule collects “information on the income of digital miners and digital mining pools for tax purposes” from January 1, 2024, through January 1, 2025.
Kazakhstan issues crypto mining permits for three years, depending on whether the miner controls the infrastructure.
Kazakhstan introduced its central bank digital currency (CBDC) pilot, the “digital tenge,” alongside the aforesaid rules.
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.
In a paper issued by the National Bank of Kazakhstan (NBK) and Binance, NBK deputy governor Berik Sholpankupov wrote:
“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.”
In October 2022, Astana Financial Services Authority (ASFA) awarded Binance a permanent license to run a digital asset platform and offer custody services.
