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Tuesday, May 30, 2023

Kazakhstan Parliament Adopts Law Regulating Crypto Mining and Exchange

Kazakhstan Parliament Adopts Law Regulating Crypto Mining and Exchange – Kazakhstan’s Senate has passed legislation to regulate cryptocurrency and related operations in the Central Asian country. The new law “On Digital Assets in the Republic of Kazakhstan,” along with other legal documents, creates the circumstances for the country to build a crypto ecosystem, according to local media.

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Members of the Mazhilis, the upper house of parliament, had already adopted its version of the legislation when the upper house of parliament reviewed it earlier in January. However, on January 19, President Kassym-Jomart Tokayev dissolved the lower chamber and called for early elections. Senator Bekbolat Orynbekov, quoted by the Zakon.kz news portal, noted that the Senate has full legislative rights until a new Mazhilis is elected.

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The digital assets law and related acts form a single collection of regulations that will allow Kazakhstan’s head of state to execute his regulatory duties regarding the mining and circulation of digital currencies. Tokayev has yet to approve the law and the other essential adjustments proposed by the senators, which include amendments to Kazakhstan’s laws on taxes and other budget payments, judicial administration, and administrative offenses.

The government’s primary purpose is to control the activity of companies that mint digital currencies in the country. Following China’s ban on the industry, Kazakhstan has become a crypto mining hotspot. The surge of miners has been blamed for the country’s growing power deficit.

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The newly enacted legislation establishes a legal framework for the sector and legalizes the market for digital assets by requiring miners and crypto exchanges to be licensed. The authorities also anticipate that it will increase international investment and state budget revenues.

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The new rules come after registered crypto miners began paying a higher charge for the electricity they use on January 1, in accordance with a decree approved by President Tokayev in July 2022. Kazakhstan has been pursuing underground mining operations and illegal trade networks in line with its regulatory measures.

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