Key Takeaways:
- The Majilis approved four bills relating to the oversight of digital mining in Kazakhstan, in addition to the bill “On Digital Assets of the Republic of Kazakhstan.”
- Miners can now only buy electricity from the common electric grid if there is an excess supply, and only via the KOREM exchange.
The “On Digital Assets of the Republic of Kazakhstan” crypto asset bill and other bills governing crypto mining in Kazakhstan have received secondary acceptance from Kazakhstani legislators.
With a third vote in favour, the law will add new licensing specifications for bitcoin miners predicated on the ownership and control of their facilities. Additionally, miners would have to pay market prices for their electricity from the energy supplier Korem.
The new proposals for digital mining and cryptocurrency use in Kazakhstan have seemed to be geared toward establishing a more organised and regulated framework for these activities within the nation.
Only those with the strongest economic position will eventually have access to the excess electricity on the electricity network in an auction where the highest bid wins. In addition, it is suggested that cryptocurrency transaction advertisements be outlawed.
The proposal also specifies two distinct kinds of mining licencing, according to local media reports.
The first group consists of digital currency miners who have the required infrastructure, such as data centres with the appropriate hardware, in the proper locations, and with the necessary levels of security.
The second category consists of digital currency miners who own equipment but lease cells from data centres and do not offer up an energy limit.
Kazakhstan has been working particularly hard to create a framework for the electricity used in the mining of digital assets. According to the regulations, the Ministry of Energy would have the power to set volume-based quotas in accordance with the requirements of the electric system.
In addition to requiring accreditation, Ekaterina Smyshlyaeva, a member of the Majilis’ Committee on Economic Reform and Regional Development, believes that introducing distinct requirements for mining pools in the form of separate standards will help to ensure that mining pools are operated in a manner that is both ethical and legal.
The flow of cryptocurrencies and the operations of cryptocurrency exchanges are forbidden within the borders of Kazakhstan. They only do so with a licence in a different jurisdiction of the AIFC, where they operate under an experimental legal system. Using the comparison of securities, the country’s territory forbids the promotion of cryptocurrency transactions, and a special procedure for its regulatory oversight has been initiated for secured assets.
