September 26, 2022

Cryptocurrency mining tax bill introduced in Kazakhstan

Legislative bodies of Kazakhstan submitted a bill according to which cryptocurrency mining is not It will be taxed if the mined coins are not exchanged for fiat money.

This and other industry development issuesblockchains were discussed at the Blockchain Day conference in Nur Sultan. Madi Saken, legal analyst at the Association for the Development of Blockchain and Data Centers in Kazakhstan, announced a draft law aimed at regulating the latest technologies, as well as determining the legal status of cryptocurrency mining and its taxation.

As Madi Saken explained, tax liabilityIt arises only when receiving income in the form of real money - when cryptocurrencies are sold on the exchange or exchanged for fiat. Therefore, mining "for yourself" can be called more a technical process than entrepreneurial activity.

However, if a person provides mining services orprovides its equipment or computing resources to other persons on a paid basis, in this case we are talking about entrepreneurship. Such mining farms will be taxed along with the usual data centers. This bill is currently under consideration.

According to Madi Saken, Kazakhstan is startingcreate more favorable conditions for the development of digital technologies and cryptocurrency mining. Recall that in May last year, Nursultan Nazarbayev, the former president of the Republic of Kazakhstan, proposed using the UN platform to create common standards for more efficient regulation of cryptocurrencies.