In what could be described as good news for cryptocurrency miners in Kazakhstan, a top lawmaker in the country has revealed that crypto mining activity would not be subjected to taxation, as it cannot be exchanged with fiat currencies.
Speaking at the Blockchain Day conference held in Nur Sultan today as reported by local news outlet kursiv, Madi Saken, senior legislative coordinator responsible for the development of blockchain data centers in Kazakhstan, stated that crypto mining is “not an entrepreneurial activity” and cannot be taxed.
“Mining is not an entrepreneurial activity but purely technological. Digital assets and cryptocurrency [mining] will not be subject to taxation because tax liabilities arise when real money income appears,” Saken noted.
He added that crypto mining activities are different from crypto exchanges’ because transactions conducted on exchanges usually involve “real money,” which could bring in taxation.
Kursiv noted that the regulation for the country’s crypto ecosystem has been fully drafted and is currently under review by the presidency, after which it would be forwarded to Mazhilis, the country’s lower house of the bicameral Parliament this month.
Notably, the regulation for the Kazakhstan crypto space would explicitly state the legal status and taxation of crypto mining when it is finally published.
As per the report, the country is focus on boosting its crypto industry by providing all the requirements needed to ensure the mining industry blossoms, which could also become a significant part of its digital economy.
Kazakhstan is already providing lower electricity price for miners as regulators believe it is one of the vital requirements that guarantee the success and failure of crypto mining.
Countries around the world are gradually looking toward boosting their crypto environments, as they believe that success in the crypto industry would increase their overall economy.
As reported last month, Ukraine partnered with leading cryptocurrency exchange, Binance, to assist the country in drafting new regulations for the cryptocurrency and blockchain industry in the country.Never miss out on our daily crypto news, stories, tips, and price analysis. Join us on Twitter | Telegram | Facebook or subscribe to our weekly Newsletter.