On February 6, Kassym-Jomart Tokayev, the president of Kazakhstan, signed a new law that reaffirmed the country's opposition to illegal mining activities and the issuing of cryptocurrency assets.
One of the main centers for Bitcoin mining in the world, Kazakhstan, has revealed plans to enact new crypto legislation to curtail tax evasion and other business practices.
In addition, starting April 1, 2023, such issuers will be governed by the country's current legislation, "On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism."
The second law focuses on unprotected digital assets, which are often obtained through cryptocurrency mining activities. Crypto miners in Kazakhstan will be required to sell at least 75% of their profits through authorized cryptocurrency exchanges in order to lessen the likelihood of tax avoidance.
“This regulation seeks to gather 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 Kazakh permits for cryptocurrency mining are only valid for three years, and they vary depending on whether the miner controls the mining infrastructure.