Bitcoin Miners will be formal Tax-payers from 2024: Kazakhstan

Kazakhstan’s numerous collaborations with the world’s largest crypto exchange, Binance shed light on the fact that the country was inclined towards crypto. Now, further elevating its interest in the industry, the government decided to roll out regulations governing Bitcoin [BTC] and other cryptocurrencies.

In a recent report by Tass, a prominent Russian media agency, the Kazakh government intends to roll out a legal framework exclusively for cryptocurrencies like Bitcoin. The lower house of the country’s parliament, the Majilis of Kazakhstan has reportedly approved five crypto-related bills. Elaborating on the bills, Ekaterina Smyshlyaeva, a member of the Mazhilis Committee on Economic Reform and Regional Development said,

“They were developed in pursuance of the instructions of the head of state on the problems of legal regulation of digital mining. The purpose of the bills is also to create a legislative framework for the production and circulation of secured and unsecured digital assets.”

As Smyshlyaeva mentioned, the bills were formulated based on the instructions of President Kassym-Jomart Tokayev. The region’s lack of framework guiding the crypto market was the reason behind the government’s latest move.

Bitcoin mining under the spotlight

Following China’s big crypto takedown, Bitcoin miners were disbanded. The biggest mining firms had to face the wrath of the Chinese government. While several shut shop, a few others migrated to different parts of the world. Kazakhstan slowly emerged as the hotspot for Bitcoin mining.

The civil unrest in the nation, however, drove a slew of miners out. Power blackouts and increased electricity demand had Kazakhstan’s Ministry of Energy blaming the mining industry. Now in an attempt to mend its relationship with miners, Kazakhstan was rolling out regulations governing the same.

Smyshlyaeva further noted,

“Support for their activities will be carried out through the introduction of a mandatory requirement for miners to exchange up to 75% of their capital on domestic crypto exchanges starting from 2024.”

It should be noted that tax regulations were also part of the Kazakh government’s latest move. The parliament intends to charge corporate income tax on miners’ compensation, tax on mining pool income, and fees on activities on crypto exchanges.