- A new law in Kazakhstan has come into force that introduces a licensing regime for crypto miners and restricts their access to low-cost electricity.
- The legislation defines the powers of state bodies that oversee the sector and creates conditions for the development of the industry.
- Mining licenses will be issued for a period of three years, and miners will only be able to purchase energy from the government-controlled exchange KOREM.
Law Regulating Crypto Assets Mining And Exchange In Kazakhstan Signed By President Tokayev
President Kassym-Jomart Tokayev has signed a law regulating cryptocurrency mining and exchange in Kazakhstan. The main purpose of the new legislation, approved together with amendments to other legal acts like the Tax Code, is to regulate activities related to the issuance and circulation of these assets.
Licensing Requirements For Crypto Miners
The digital asset law introduces licensing for crypto miners and exchanges, replacing the current registration system. Mining licenses will be issued for a period of three years to two groups of applicants. Entities that own mining infrastructure such as data centers meeting certain standards in terms of equipment, location, and security fall under one category. The second is for those that own mining hardware but rent space in crypto farms and do not apply for an energy quota directly. A separate set of requirements has been introduced for mining pools.
Limitations On Access To Low-Cost Electricity
Crypto miners will be allowed to purchase electricity from the national grid only if there is a surplus and exclusively from KOREM (Kazakhstan’s government-controlled centralized exchange). However, price caps for this energy will be removed and trading will take place based on market principles. This change follows an influx of miners attracted by cheap subsidized power in 2021 which caused an electricity deficit in Kazakhstan.
Restrictions On Consumption In The Sector
The authorities have taken steps to restrict consumption in the sector, including temporarily disconnecting some large users who exceeded their quotas or engaged in illegal activity. These measures are aimed at creating fair competition between market participants while allowing legitimate businesses to continue operating without disruption or excessive cost burdens.