Parliament in Kazakhstan faces new bitcoin rules

Last Updated: 8 December 2022

Kazakhstan is pushing for rules for bitcoin miners. The energy-rich country is a popular spot for parties in the industry.

According to The Block, a new bill is before Kazakhstan’s parliament. Whether it is good news for local miners remains to be seen. It involves additional rules and a new policy with licences. For instance, there will be a distinction between mining yourself or renting through a service provider.

Miners will also have to deal with energy supplier Korem. Miners, as it seems now, will always have to pay the same rates as other companies. Additional taxes already apply to miners and energy. The bill has yet to be voted on. A vote will be taken after a third proofreading.

Kazakhstan is one of the countries that saw an influx of new entrepreneurs after China chased miners out of the country. However, that development was not welcomed by all with cheers. After protests over high fuel prices, the move included new guidelines and taxes on miners.

According to Cambridge University, Kazakhstan is one of the countries with the highest hash rate in the world. However, the latest report dates from early 2022. It is unclear what impact the current developments have and had on Kazakhstan’s industry.

What is clear, however, is that countries known for their cheap energy are also struggling with bitcoin regulations.

Another remarkable construction also came from Kazakhstan earlier this year. On 14 April, the minister of national economy said in a briefing to the government that they are working on a tax plan. Alibek Kuantyrov says the amount to be paid should be linked to the value of bitcoin. So it would be a flexible tax. At current exchange rates, it is then likely to fall a bit lower.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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