More Regulations Proposed to ‘Streamline’ Mining Sector in Kazakhstan – Mining Bitcoin News

A member of Kazakhstan’s parliament suggested that authorities should expand their regulatory framework for crypto miners. The additional rules should streamline their activities and help correct the forming public opinion that they are responsible for the country’s electricity deficit.

According to a lawmaker, Crypto mining in Kazakhstan needs additional regulation

To streamline operations and create a digital asset ecosystem, new regulations must be established for crypto mining. That’s according to a recent statement by Dyusenbay Turganov, member of the Mazhilis, the lower house of Kazakhstan’s parliament.

Inbusiness.kz quoted the deputy as saying that mining is a legal industry activity ever since 2020’s legislative amendments. The deputy also stated that miners who operate in compliance with the law would be subject to a new tax starting January 2022.

“Nevertheless, against the backdrop of a brewing power shortage, society has an incorrect, misled opinion about digital mining as the culprit of the energy crisis and it seems that government agencies are not addressing this problem to the required extent,” Turganov elaborated. He also commented that “effective measures and their results are not visible, there is no due coordination of government bodies in this important process.”

‘Gray Miners’ Blamed for Power Shortage, Various Solutions Considered

The growing consumption of its mining sector has led to a rising deficit in electricity in Kazakhstan. It has exceeded 7% for the first nine months. Many consumers experienced power outages in November. Restrictions were also imposed on the southern part of the country. Kazakhstan was forced to import more electricity from Russia in order to deal with its shortages.

Dyusenbay Turganov insists, however, that it’s uncontrolled electricity consumption by illegal mining farms that’s the main reason for the current situation. To solve the issue, the government has to step up efforts to identify so-called “gray miners” and suppress their illegal activities, he added. The lawmaker stated that this would permit authorities to restrict their use of electricity, which would be crucial for legitimate consumers. Turganov was quoted saying:

The requirements and criteria to streamline the activities of miners are needed in order for an integrated ecosystem of digital assets that circulates on the AIFC-based AIFC platform is developed and adopted. [Astana International Financial Centre]Reduce the amount of shadow economies.

The parliamentarian proposes that miners get involved in the development of renewable energy sources in Kazakhstan and help deal with imbalances in the nation’s power supply system. Authorities should also take steps to expand the country’s generating capacities, he urged.

Turganov’s suggestions come after a group of his colleagues in the Mazhilis proposed, in early October, the establishment of a state register for cryptocurrency farms operating in the country. The lawmakers are also concerned about the rising energy consumption in this sector and want miners to pay a higher rate for electricity used to produce digital coins.

Are you positive that Kazakhstan will bring additional regulations for crypto miners? Comment below to share your hopes and fears.

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