Countries are gradually seeing the benefits of cryptocurrency activity to their economy, as Kazakhstan is making plans to develop its cryptocurrency mining industry, in order to generate more revenue.
According to a local media report today, the plan was revealed by the Minister of Digital Development, Innovation and Aerospace Industry, Askar Zhumagaliyev, when he addressed the June 11 plenary session of the Senate.
Zhumagaliyev said that the plan, which was formulated through the help of international experts, would help Kazakhstan generate 300 billion tenge ($738.4 million) in investments from cryptocurrencies and crypto mining in the next three years.
He added that the revenue gotten from the activity would be used to develop the crypto mining industry, to attract more profit.
More Bitcoin miners flood Kazakhstan
Although Kazakhstan’s current bill on digital technologies prohibits the trade and issuance of unsecured digital assets, it permits crypto mining as it does not regard it as an entrepreneurial activity. This has made more people in the country get involved in mining activities, and Zhumagaliyev believes the sector has a big potential.
“We studied the experience of other countries, such as the United States, Sweden, and South Korea. We see today that activities such as digital mining and cryptocurrency are part of our everyday lives,” he added.
The minister noted that Kazakhstan currently has 14 mining farms strategically located near different energy sources around the country’s northern regions, the Pavlodar and East Kazakhstan regions, as well as Uralsk.
These mining farms have contributed immensely to the country’s GDP, generating 82 billion tenge (US$201.7 million) of investments in the nation.
No tax on crypto mining
Although Kazakhstan forbids the unlawful issuance and circulation of unsecured digital assets, the nation has shown support for cryptocurrency mining activities in the past. Coinfomania reported last year that crypto mining operations in the country would not be subject to taxation unless it is exchanged to fiat.