Kazakhstan Amends Registration Rules for Cryptocurrency Miners – Mining Bitcoin News

Kazakhstan revised its registration requirements for crypto mining companies and persons. These new regulations are being issued amid a clampdown on crypto mining in Kazakhstan, a Central Asian country where there has been a persistent shortage of electricity due to the continued influx of miners.

Crypto miners will file quarterly reports with Kazakhstan Authorities

An order issued by Kazakhstan’s minister of digital development, Bagdat Musin, has expanded the registration and reporting requirements for those minting digital coins. This document requires individuals and legal entities to notify the regulators 30 days prior to beginning activities in crypto mining. Similar applies to companies and individuals providing services to these enterprises.

Now, cryptocurrency miners will be asked for certain information, including their name and registration numbers, contact information, bank details, and IP addresses. You will need to specify how much energy your mining facility requires, what investments they plan, as well as the number of employees.

Copies of documents that prove ownership or customs declarations of mine equipment are required. Documents confirming residency of Kazakhstan are also needed. Information about the exact location of the mining site is important as well as details on how it will connect to the grid.

For every quarter, miners who have started their operations and the providers of maintenance services are required to submit similar reports. Additionally, miners that decide to stop operating must notify the government within ten days of ceasing operations.

The new reporting requirements come as the authorities in Nur-Sultan are clamping down on the crypto mining industry, a year after Kazakhstan became a magnet for miners amid China’s offensive against the sector. While the government is targeting illegal miners, authorized bitcoin farms are also being affected by power outages due to growing electricity shortages.

Some firms have left the country, while many mining operations have been closed and others remain open. Auditors have tried to close tax loopholes used by miners. Authorities are also planning to increase tax burden for the remaining Kazakhstanis and will tie the tax levy with the digital currency.

Are you expecting more cryptocurrency miners to move out of Kazakhstan after the tighter reporting and registration rules were adopted? Comment below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.