Kazakhstan’s Minister of Digital Development Bagdat Musin, by a special order, made changes to the rules on reporting cryptocurrency mining activity.
Those planning to engage in mining or provide related services must, within 30 days before starting operations, submit to the ministry information on:
- a legal entity or an individual entrepreneur, including contact details, banking details and other information;
- the mining capacity required in MW;
- the number of jobs;
- planned investments in tenge;
- an IP address;
- a copy of the customs declaration or a document confirming ownership of the equipment or its possession on another legal basis;
- information about the location of the data centre for mining;
- proof of residency in Kazakhstan;
- a copy of the technical conditions for connection to the power grid.
Miners must also report this information quarterly by the 10th day of the month following the reporting month.
In case of cessation of cryptocurrency mining activities, the competent authority must be notified within 10 days of its termination.
“This was done to connect ‘white’ miners, to classify them, and specify the criteria for who can be connected. There was no such list of requirements before,” said ForkLog’s head of the National Association of Blockchain and Data-Center Industry of Kazakhstan, Alan Dordzhiev.
However, miners have still not had electricity supplies resumed, he confirmed.
In January, Kazakhstan’s power grid operator KEGOC restricted mining farms’ electricity supply. Since then this restriction has been extended several times.
In February, President Kassym-Jomart Tokayev ordered to identify all mining farms and to raise the tax on cryptocurrency mining. The Ministry of National Economy of Kazakhstan proposed to raise the tax rate tenfold. The authorities also announced plans to license such activity.
Against this backdrop, many miners have begun leaving Kazakhstan. Read in our exclusive about how the country, which attracted many mining business players in a short time, risks losing all of it.
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