{"id":14051,"date":"2022-10-01T21:57:11","date_gmt":"2022-10-01T21:57:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bill-aims-to-limit-crypto-mining-in-kazakhstan-only-to-registered-companies-mining-bitcoin-news\/"},"modified":"2022-10-01T21:57:11","modified_gmt":"2022-10-01T21:57:11","slug":"bill-aims-to-limit-crypto-mining-in-kazakhstan-only-to-registered-companies-mining-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bill-aims-to-limit-crypto-mining-in-kazakhstan-only-to-registered-companies-mining-bitcoin-news\/","title":{"rendered":"Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies \u2013 Mining Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector.<\/strong><\/p>\n

Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb \u2018Gray\u2019 Mining<\/h2>\n

Members of the Mazhilis, the lower house of Kazakhstan\u2019s parliament, have put forward a new bill<\/a> introducing rules for the extraction of cryptocurrencies in the country. Under its provisions, only companies registered at the Astana International Financial Center (AIFC<\/a>) or non-resident entities that have agreements with licensed data centers, will be permitted to mine digital coins.<\/p>\n

Kazakhstan became a magnet for crypto miners following China\u2019s crackdown on the industry and the influx of mining businesses has caused a growing power deficit. AIFC, the Central Asian nation\u2019s financial hub, is in the focus of government efforts to place the country\u2019s growing crypto sector under oversight. Earlier this year, exchanges registered there were allowed<\/a> to open accounts with local banks<\/a>.<\/p>\n

The current procedure for notifying authorities of mining activities is voluntary, the crypto news outlet Forklog noted in a report on the legislative attempt. The process is regulated by an order issued by the minister of digital development. Only a third of all mining companies operating in Kazakhstan have registered, Member of Parliament Ekaterina Smyshlyaeva revealed.<\/p>\n

\u201cThe uncontrolled use of electricity by \u2018gray\u2019 miners poses a threat to the energy security of Kazakhstan,\u201d the lawmaker insisted. Smyshlyaeva added that the current legislation does not regulate the mechanism for the sale of the mined cryptocurrency or the role of local financial service providers and the circulation of digital assets. \u201cThe procedure for their production and the establishment of property rights to them are regulated only at sub-legislative level,\u201d she explained.<\/p>\n

According to Kazakhstan\u2019s State Revenue Committee, the contributions of crypto mining entities to the state budget reached $1.5 million in the first quarter of 2022. In July, President Kassym-Jomart Tokayev signed<\/a> into law a bill amending the country\u2019s Tax Code to impose higher tax rates on crypto miners. The levies now depend on the amount and average price of electricity consumed for the minting of bitcoin and other cryptocurrencies.<\/p>\n

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authorization<\/a>, bill<\/a>, coin minting<\/a>, consumption<\/a>, Crypto<\/a>, crypto miners<\/a>, crypto mining<\/a>, Cryptocurrencies<\/a>, Cryptocurrency<\/a>, deficit<\/a>, draft law<\/a>, Electricity<\/a>, Energy<\/a>, Kazakhstan<\/a>, Law<\/a>, Legislation<\/a>, Miners<\/a>, mining<\/a>, registration<\/a>, Regulation<\/a><\/div>\n<\/div>\n

Do you expect the new law to reduce the number of entities authorized to mine cryptocurrencies in Kazakhstan? Tell us in the comments section below. <\/strong><\/em><\/p>\n

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\nLubomir Tassev <\/h6>\n

\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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