The Republic of Kazakhstan has made significant progress in regulating the crypto industry with the recent adoption of a bill by the Senate. This new law, known as the “On Digital Assets in the Republic of Kazakhstan,” along with additional legal documents, creates a framework for developing a crypto ecosystem within the country.
The legislation was reviewed by members of the upper house of parliament earlier in January, with certain amendments proposed to the Mazhilis, which had already approved its version of the bill.
Due to the recent dissolution of the lower house of parliament by President Kassym-Jomart Tokayev and the call for early elections, the Senate now holds all legislative powers.
The digital assets law and related acts make up a comprehensive set of regulations that will allow President Tokayev to fulfill his duties in regulating the mining and circulation of digital currencies.
The law is yet to be signed by the President, along with amendments to other laws, including taxes, judicial administration, and administrative offenses.
The government’s primary focus is to regulate the activities of companies involved in crypto mining within the country. Kazakhstan has become a hub for crypto mining following China’s crackdown on the industry, which has contributed to the country’s growing electricity deficit.
The new legislation legalizes the market for digital assets by introducing licensing for miners and crypto exchanges, hoping to attract more foreign investment and increase state budget revenues.
In addition to regulatory efforts, the country has taken measures to crack down on illegal underground mining farms and trading platforms. Starting January 1st, registered crypto miners have been paying a higher surcharge for their electricity usage under a law signed by President Tokayev in July 2022.
The adoption of this bill marks a significant step forward in establishing a clear and defined framework for the crypto industry in Kazakhstan.
The adoption of the new law by Kazakhstan’s Senate is a significant milestone in the country’s journey toward becoming a major player in the global cryptocurrency market.
The bill is set to bring stability, growth, and prosperity to the crypto market in the Republic of Kazakhstan, making it a destination for investors and entrepreneurs looking to make their mark in the industry.
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