Kazakhstan, once a hub for crypto mining, is again looking to regulate and welcome the crypto sector as it unveiled its first draft law on crypto assets.
The energy-rich Central Asian nation seeks to develop a robust framework for regulating the crypto mining process and circulation.
Crypto Mining Without Appropriate Surveillance
Crypto mining is an energy-intensive process, and many mining hubs in Kazakhstan continue without proper surveillance or regulation. It is for the first time that a crypto draft law has been prepared by the deputies of the lower house of the parliament of Kazakhstan, known as the Kazakh Mäjilis. Details of the bill were reported on Thursday by Kazinform, an international news agency based in Kazakhstan.
Member of the Committee for Economic Reform and Regional Development of the Mäjilis, Smyshlyaeva Ekaterina Vasilevna, talked about the finer points of the bill and said that a need was felt to have a regulatory framework in place to oversee the activities of the crypto sector.
Smyshlyaeva added that the bill also seeks to cater to two areas of the crypto sector-The first is the mining sector which has been on for some time without any form of regulation.
Lack of regulation in the mining sector has led to the exploitation of the energy resources of the nation. The latest bill seeks for voluntary registration of the mining activities so that a proper tab can be kept on the mining activities and their energy consumption.
Smyshlyaeva added that the voluntary registration process has led to many mining companies not registering, and only a third of the digital mining entities in Kazakhstan has officially registered with the authorities.
Crypto Mining Activities In Kazakhstan Needs Regulation
The nation’s indiscriminate use of energy resources for digital mining puts a strain on the energy sector, and the draft law seeks to remedy this. Smyshlyaeva was quick to acknowledge the benefits of crypto mining, as it helps bring revenue to the government via taxes. Additionally, crypto mining is a productive investment in the economy and will assist in developing the IT sector.