The Parliament of Kazakhstan passes a law regulating crypto mining and exchanges – regulation

Lawmakers in Nur-Sultan have approved the final version of the Law “On Digital Assets in the Republic of Kazakhstan.” The new legislation, including several other bills, regulates the circulation of cryptocurrencies in the country and introduces a licensing system for crypto miners and exchanges.

Senate votes on crypto bill and sends it to President of Kazakhstan

The Kazakh Senate has passed a bill that would regulate cryptocurrencies and related activities in the Central Asian nation. In addition to additional legal documents, the new law “On Digital Assets in the Republic of Kazakhstan” creates conditions for the establishment of a crypto ecosystem in the country, local media reported.

Members of the upper house of parliament examined the comprehensive package in early January and decided to propose certain changes to the Mazhilis, which had already approved their version of the law. However, President Kassym-Jomart Tokayev dissolved the lower house on January 19 and called early elections.

Until a new Mazhilis is elected, the Senate has all legislative powers, Senator Bekbolat Orynbekov told the news portal Zakon.kz. The Law on Digital Assets and related laws constitute a single legislative package that will enable the Head of State of Kazakhstan to fulfill his regulatory obligations regarding the mining and circulation of digital currencies.

Tokayev has yet to sign the law and the other necessary changes introduced by the senators, including changes to Kazakhstan's laws on taxes and other payments to the budget, the administration of justice and administrative offenses.

A key goal of the government is to regulate the activities of companies that mint digital currencies in the country. Kazakhstan became a crypto mining hotspot following China's crackdown on the industry. The influx of miners was blamed for its growth Electricity deficit.

The newly passed legislation creates a legal framework for the sector and legalizes the digital asset market by introducing licenses for both miners and crypto exchanges. Authorities also hope it will attract more foreign investment and increase government revenue.

The new rules will apply after registered crypto miners start paying on January 1st higher surcharge for the electricity they consume according to a law signed by President Tokayev in July 2022. In addition to its regulatory efforts, Kazakhstan has pursued the underground Mining operations and illegal Trading platforms.

Do you think Kazakhstan will be an attractive destination for crypto companies after the new legislation comes into force? Share your expectations in the comments section below.

Lubomir Tassew

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens' quote: "Being a writer is what I am, not what I do." In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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