Kazakhstan plans to reduce tax fraud and unlawful business operations
Kazakhstan, which is one of the main centres for Bitcoin (BTC) mining in the world, has revealed intentions to establish new crypto legislation in order to cut down on tax fraud and illegal business activities.
On February 6, Kazakh President Kassym-Jomart Tokayev signed a new legislation that renewed the nation's stance against the unlawful issuance of crypto assets and mining activities. This law also reinstated the nation's stance against illegal mining operations. The first of the two separate pieces of law mandates that issuers of secured digital assets get authorisation from the government.
In addition to this, such issuers will be monitored in accordance with the legislation that is now in effect in the country, which is titled "On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism." The new regulation will go into effect on the first of April in 2023.
The second piece of proposed law targets insecure digital assets, which are often acquired via the process of crypto mining. In Kazakhstan, cryptocurrency miners will soon be required to sell at least 75% of their earnings via licensed cryptocurrency exchanges. This measure is being taken to limit the likelihood of tax avoidance. This regulation, which will take effect on January 1, 2024, will remain in force until January 1, 2025, and its primary objective is to gather "information on the revenue of digital miners and digital mining pools for tax reasons."
Every cryptocurrency mining license in Kazakhstan is only valid for a period of three years and varies in price according on whether or not the miner owns the mining facilities. In Kazakhstan, all mining licenses are provided on a first-come, first-served basis.
Alongside the implementation of the aforementioned regulations, Kazakhstan initiated the "digital tenge" pilot project for its central bank's digital currency (CBDC) initiative.