Kazakhstan plans to release a regulatory framework to regulate bitcoin and cryptocurrencies, according to a report from Russian media outlet Tass.
Ekaterina Smyshlyaeva, a member of the Mazhilis Regional Development and Economic Reform Commission, said: “The National Assembly deputies developed an industry bill on digital assets of the Republic of Kazakhstan and four projects. relevant legislation as a legislative initiative”.
According to the report, the initiative is being developed due to the lack of a framework in the region as it deals with bitcoin and cryptocurrency mining. Additionally, Smyshlyaeva said that part of the draft law focuses on “the production and circulation of secured and unsecured digital assets.”
Specifically, the region is seeking to establish guidelines on electricity consumption as it relates to the mining of digital assets. The framework will give the Department of Energy the authority to provide volume-based quotas depending on the needs of the grid.
“The bills could also open up additional opportunities to attract investment for building new generations in renewable energy sectors and sources,” explains Smyshlyaeva.
The framework also seeks to establish guidelines for the growing number of exchanges popping up in Kazakhstan and their relationships with miners.
Support for their activities will be provided through the introduction of a mandatory requirement for miners to exchange up to 75% of their capital on domestic cryptocurrency exchanges, Smyshlyaeva said. starting in 2024.
In addition, the law seeks to establish further tax regulations.
The report states that “it is expected to charge a corporate income tax of the republican budget on the remuneration of miners, tax on mining pool income, payment for operations on cryptocurrency exchanges.” “.
In addition, the law seeks to regulate mining pools and cloud services that use the region’s raw materials by requiring tighter licensing expectations for service providers.
“It will allow you to redirect investor interest from the potential of raw materials to the revenue of digital mining products,” Smyshlyaeva said.
Smyshlyaeva went on to explain that the law is Kazakhstan’s first step in establishing a full-fledged bitcoin and cryptocurrency ecosystem.