The government of Kazakhstan, according to a ministerial order issued today, bitcoin and cryptocurrency will require its miners to register their operations with the authorities.
What About Bitcoin and Cryptocurrency Mining Rules in Kazakhstan?
The following statements were included in the statement of the Ministry of Digital Development, Innovation and Aviation Industry of Kazakhstan:
“All miners along with job registration data include personnel information, the power they consume or plan to consume, the IP addresses used, the planned investments, the location of the mining facility, a copy of the cargo customs declaration or a document proving that they have obtained the equipment legally, technical information for the conditions of their connection to the electricity grid. conditions and documents showing that the employees are citizens of Kazakhstan together with other documents.”
New miners will have to file information 30 days before they start operating, and closed mines will have to report it to the authorities within 10 days after they cease operating. Existing miners will file the necessary information every three months.
These regulations were added as an amendment to an order made in October 2020 by the Ministry of Digital Development, Innovation and Aviation Industry. The order was signed on April 29.
“The First Step Towards Legal Mining in the Country”
Alan Dorjiyev, head of the Kazakhstan Blockchain and Data Centers Industry Association, said that this is “the first step towards formally authorizing the supply of electricity to legitimate mining data centers.” The country’s national grid operator stopped supplying electricity to miners in January.
According to the new order, existing miners will also inform the authorities about the number and type of mining rigs used.
In recent years, the country has been experiencing energy cuts, albeit partially, as cryptocurrency miners flock to this energy-rich Central Asian country. Authorities are trying to shut down unlicensed mining operations to reduce the load on the country’s energy grid.
Kazakh authorities said in March that they had closed 106 mining facilities and confiscated 67,000 BTC equipment worth $193 million.
Didar Bekbauov, co-founder of local mining company Xive.io, said in a statement that this new regulation is the first step towards cryptocurrency mining regulations in Kazakhstan.
*Not investment advice.