Miners in Kazakhstan Need To Sell 75% of Revenue Via Official Exchanges

• Starting on April 1, 2023, the new legislation will be fully implemented.
• Miners need to sell at least 75% of their earnings to official crypto trading platforms.

One of the largest Bitcoin mining places in the world, Kazakhstan, has revealed intentions to impose new crypto legislation. In an effort to curb tax evasion and unsavory business practices.

Kazakhstan President Kassym-Jomart Tokayev reaffirmed the country’s position on February 6. By signing new legislation prohibiting the illegal mining of cryptocurrencies and the issuance of digital currency. Among the two pieces of law, the first specifies that issuers of secured digital assets must have official authorization.

In addition, the current legislation “on Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism” will keep tabs on these issuers. Starting on April 1, 2023, the new legislation will be fully implemented.

Gathering Data on Revenue Earned

The second piece of law is geared against untraceable digital assets, such as those obtained via cryptocurrency mining. To prevent tax avoidance, the Kazakhstan government has mandated that miners sell at least 75% of their earnings to official cryptocurrency trading platforms. The goal of this regulation is to gather data on the revenue of digital miners. And digital mining pools for tax reasons, and it will be in force from January 1, 2024, through January 1, 2025.

Licenses to mine cryptocurrencies in Kazakhstan are only valid for three years. And vary depending on whether or not the miner is the legal owner of the mining facility. At the same time that these rules were passed, the “digital tenge” pilot project for Kazakhstan’s central bank digital currency (CBDC) was released.

Moreover, National Bank of Kazakhstan (NBK) deputy governor Berik Sholpankupov envisioned a “collaboration between traditional finance and DeFi.” In a report published by the NBK and cryptocurrency exchange Binance.