Kazakhstan had been working on crypto regulation for some time and the final draft of the said law called ‘On Digital Assets in the Republic of Kazakhstan’ has been approved by lawmakers in Nur-Sultan.
There are a number of other bills that have also been included in the new legislation. It is aimed at regulating the crypto circulation in Kazakhstan and also comprises a licensing regime for crypto exchanges and mining companies.
A bill has been adopted by the Senate in Kazakhstan and has been designed for regulating cryptocurrencies and other related activities in the country.
The local media reports said that the new law requires additional legal documents and is aimed at creating conditions that would help in establishing a regulated crypto ecosystem in the Central Asian nation.
The comprehensive package had been considered by the members of the upper house of the Kazakhstan parliament earlier in January.
They had opted to propose some amendments to the legislation to the Mazhilis, which had already given its approval for the legislation.
But, on January 19th, the lower house of parliament had been dissolved by President Kassym-Jomart Tokayev and early elections had been called.
All legislative powers will rest with the Senate until the election of a new Mazhilis.
The new digital assets legislation called ‘On Digital Assets in the Republic of Kazakhstan’ and other related acts will constitute as a single set of laws.
Thanks to these laws, the head of state of Kazakhstan would be able to fulfill their regulatory duties related to the circulating and minting of digital currencies in the country.
Tokayev has not yet signed the law in question, or the other changes that had been made by the senators.
These include the amendments to the laws in Kazakhstan that apply to taxes and other payments to the judicial administration, budget, and administrative offenses.
One of the most important goals of the Kazakhstan government is to regulate the activities of crypto mining companies that are operating in the jurisdiction.
After China’s crackdown on the mining industry in 2021, Kazakhstan had become a hotspot for crypto miners due to the cheap electricity available.
The influx of miners in the Central Asian nation resulted in an electricity deficit due to which the new legislation comes with a framework for regulating crypto mining activities.
In addition, the law will also legalize the digital assets’ market by introducing licensing requirements for crypto exchanges as well as crypto mining firms.
The authorities are also hoping that legislation will help in boosting the revenues for the state budget in the form of taxes and attract more foreign investments.
The new law comes after a higher surcharge was implemented for electricity consumed by crypto miners from January 1st.
The law had been signed in July 2022 by President Tokayev. Not only has Kazakhstan been focusing on introducing regulation, it has also been working on eliminating illegal trading platforms and mining farms.