Kazakhstan has introduced a draft law on taxation of cryptocurrency mining

Kazakhstan has introduced a draft law on taxation of cryptocurrency mining

The legislative bodies of Kazakhstan have submitted a bill according to which the mining of cryptocurrencies will not be taxed if the extracted coins will not be exchanged for Fiat money.

This and other issues related to the development of the blockchain industry 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, reported on a draft law aimed at regulating the latest technologies, as well as determining the legal status of cryptocurrency mining and its taxation.

As explained by MADI Saken, tax liability arises only when income is received in the form of real money – when the cryptocurrency is sold on the exchange or exchanged for Fiat. Therefore, mining “for yourself” can be called a technical process rather than an entrepreneurial activity.

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

According to MADI Saken, Kazakhstan is beginning to create 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 effective regulation of cryptocurrencies.