The government of Kazakhstan has revised the registration requirements for individuals and companies involved in crypto mining. The updated regulations come amid an ongoing crackdown on the industry in the Central Asian country, where an influx of miners has been blamed for persistent power shortages.
Crypto miners submit quarterly reports to Kazakhstani authorities
An order issued by Kazakhstan’s Minister of Digital Development Bagdat Musin expands the registration and reporting requirements for those who mint digital coins. The document requires individual entrepreneurs and legal entities intending to mine cryptocurrencies to notify regulators at least 30 days before the event begins. The same applies to companies and individuals serving such businesses.
Cryptocurrency miners are now required to submit certain data, including their company’s name, registration number and contact information, as well as their bank details and IP address. They must also detail the energy needs, planned investments and headcount of their mining facilities.
The required documents include copies of customs declarations or other proof of ownership of mining equipment, documents confirming that the participating businesses are residents of Kazakhstan, information indicating the location of mining sites in the country, and technical instructions on how the hardware will be connected to the grid.
Miners already operating and their maintenance service providers are obliged to submit similar reports to the government on a quarterly basis. Additionally, mining entities withdrawing from operations must notify the state within ten days of terminating activities.
The new reporting requirements come as Nur-Sultan authorities are cracking down on the cryptocurrency mining industry, a year after Kazakhstan became a miner’s magnet in China’s offensive against the industry. The government has been targeting illegal miners, but even authorized bitcoin farms have suffered blackouts due to power shortages.
Shortages have forced some companies to leave the country, while dozens of mining facilities have been shuttered this year, many of which remain without power. Auditors have also been working to close a tax loophole exploited by some miners, while authorities prepare to increase the tax burden on those who remain in Kazakhstan and intend to tie the tax to the value of the minted digital currency.
Do you expect more crypto miners to leave Kazakhstan following stricter registration and reporting rules? Let us know in the comments section below.
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