Cryptocurrencies such as Bitcoin, Ethereum, and others became popular around the world. The crypto market is developing, and countries should adopt to the new reality. One of the countries, which realized the importance of crypto and blockchain innovation is Kazakhstan.
It is important to mention that Kazakhstan’s government is in favor of cryptocurrencies. Moreover, last year, the governor of Kazakhstan’s main financial hub, the Astana International Financial Center (AIFC), underlined the importance of this emerging technology. He noted that that digital currency should be regulated, but AIFC supports the development of cryptocurrencies.
In 2019, AIFC cooperated with blockchain tech giant Bitfury to apply the technology across multiple industries.
Crypto laws in Kazakhstan
Recently, Kazakh lawmakers finalized a draft law on crypto taxation. The purpose of this law is to establish the legal status of crypto mining as well as rules for its taxation.
At the moment, the bill regarding crypto taxation is under consideration with the presidential administration.
Mazhilis, which is the lower house of Kazakhstan’s parliament, will discuss this bill in December 2019 based on the preliminary information.
A legislative analyst, Madi Saken, explained how this law would apply to the crypto industry.
He works at the National Association for the Development of the Blockchain and the Industry of Data Centers of the Republic of Kazakhstan.
Crypto owners will have to pay the tax when they exchange their crypto assets for fiat money.
Another news is that crypto mining farms would be taxed as in the case of typical data centers.
Kazakhstan is the biggest country in Central Asia in terms of market capitalization. Moreover, it is among the top ten countries in the world. This Central Asian country was part of the Soviet Union until it ceased to exist in 1991. The country is home to more than 18 million people.