Kazakhstan Develops the First Draft Laws on Crypto Mining

Share IT

Key Takeaways:

  • The first proposal of legislation on cryptocurrencies has been created in Kazakhstan, and it promotes the legal Bitcoin mining sector.
  • Regarding the most recent announcement, deputy Ekaterina Smyshlyaeva released a statement.

Kazakhstan just published its first proposed law on cryptocurrencies, and according to the KazInformation source, deputy Ekaterina Smyshlyaeva made a comment about it. Kazakhstan is trying to regulate and embrace the cryptocurrency industry.

The report states that members of the Kazakh Mäjilis prepared the draft law on crypto. The lower chamber of Kazakhstan’s parliament is called the Mäjilis.

Smyshlyaeva Ekaterina Vasilevna, a member of the Committee for Economic Reform and Regional Development of the Mäjilis, spoke about the bill and provided additional context on its purpose, necessity, and the growing demand for appropriate regulation in Kazakhstan’s crypto industry.

The legislation’s introduction was made by Smyshlyaeva. For Kazakhstan territory to be free of cryptocurrencies mining, normative-legal measures are required.

The unregulated growth of the energy consumption industry is a result of the regulation of cryptocurrency mining and the lack of additional oversight of cryptocurrency manufacturers.

Smyshlyaeva further pointed out that the law aims to address two aspects of Kazakhstan’s bitcoin market. The first is the industry of mining cryptocurrencies, which has never had effective regulation.

Smyshlyaeva claims that permitting cryptocurrency mining without appropriate control has resulted in a careless exploration of the nation’s energy resources. Smyshlyaeva stated that although Kazakhstani law calls for the registration of mining activities, doing so is entirely optional.

The current legal framework in Kazakhstan places restrictions on the movement of speculative digital assets like cryptocurrencies.

The International Financial Centre is the only location where cryptocurrency activities, including mining and exchange operational processes, are carried out within the initial proposal’s purview.

The deputy said that the Astana International Financial Centre Constitutional Law does not govern this practice.

Despite this, Smyshlyaeva acknowledged the value of crypto mining, as it contributes to tax money for the government.

Cryptocurrency mining is also a beneficial economic investment that will aid in the expansion of the IT industry. Even the head of Kazakhstan’s central bank is optimistic about cryptocurrencies’ future.

President Kassym-Jomart Tokayev reportedly said that Kazakhstan is prepared to legislate a system for converting cryptocurrency to cash if necessary, according to a report published by the local news outlet Informburo.

If the trial launch of the project for the conversion of cryptocurrencies in the AIFC is successful, President Kassym-Jomart Tokayev declared his willingness to move forward with its development.

As stated by the president of state, Kazakhstan wants to lead the way in the development of new digital technologies, a cryptocurrency environment, and regulated, open-source mining.

Share IT
Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!