Kazakhstan Blockchain Association Proposes Legal Reforms
Kazakhstan Updates Tax Legislation to Boost Digital Mining and Asset Exchanges
The Kazakhstan Association of Blockchain Technologies and Data Centres has successfully revised specific regulations of Kazakhstan’s tax legislation in order to boost the development of digital mining and digital asset exchanges in the country.
After a collaborative effort with key government bodies and the Parliament over a six-month period, President Kassym-Jomart Tokayev signed the law on amendments and additions to tax legislation on Dec. 12.
One of the most significant changes is the fixed rate of payment for digital mining consumption of 1 kilowatt/hour of electricity, which will be reduced to 2 tenge starting from Jan. 1, 2024. Additionally, the payment rate for digital mining when using generating facilities will be revised to 1 tenge.
Furthermore, digital asset exchanges registered in Kazakhstan are exempt from paying the value-added tax (VAT) on digital asset transactions. This move is aimed at placing Kazakhstan’s digital asset exchanges in a more competitive position in the global market of digital asset turnover.
The cancellation of VAT and the exclusion of article 264 of the Tax Code, due to duplication of existing regulations, reflect the government’s commitment to fostering a transparent digital asset industry in Kazakhstan.
Dauren Karashev, the chief executive of the Kazakhstan Association of Blockchain Technologies and Data Centers, expressed the association’s commitment to monitoring and revising legal regulations that hinder the regular development of the digital asset industry.
It is important to note that the views and opinions expressed in the article are those of the author and do not necessarily reflect the position of The Astana Times.
