Kazakhstan has once again tightened laws for business players, making it one of the most powerful nations in the world by hashrate share for Bitcoin (BTC) mining.
The auctions begin
Kazakhstan began holding energy auctions for miners. Didar Bekbauov, the co-founder of Xive (1), a platform that offers all-in-one cryptocurrency mining solutions, explains the specifics of the new rules that Kazakhstan's Majilis, the lower house of Parliament, has adopted. The five laws as a package impose new licensing and tax regulations and a new system for acquiring power for mining equipment. With the adoption of new regulations, miners may now only buy power from the public grid when there is a surplus and only through KOREM (Kazakhstan Electricity and Power Market Operator), which serves as an exchange platform. Miners participate in auctions where only the highest bidder prevails.
The restrictions and regulations
Two licenses must be obtained: the first is for miners who own their equipment, and the second is for those who borrow the machinery. Deputy Ekaterina Smyshlyaeva (2) emphasized how the new rules follow information security guidelines: The measure establishes different standards for mining pools in terms of the placement of their server capacity in Kazakhstan and compliance with information security laws, in addition to mandating accreditation. In addition, additional taxes are levied upon everyone who participates in bitcoin mining activities in Kazakhstan.
New levies have been imposed, and a prohibition on cryptocurrency promotion is imminent. Mining pools and lone miners will qualify for business income tax based on the value of the coin sold and the pools' commission fees. Then, value-added tax will be charged to those who carry out bitcoin transactions, while standard corporate income tax will be charged to cryptocurrency exchanges. The Majilis is also mulling a total prohibition on cryptocurrency transaction advertising and unique rules for "cryptocurrency securities."