Kazakhstan orders crypto miners to register with authorities
The Kazakh Digital Development ministry order codifies regulations of registering and reporting for cryptocurrency miners amidst energy shortage
By Shashank Bhardwaj
The government of Kazakhstan issued a ministerial order citing the rules for registration of cryptocurrency mining facilities and reporting of cryptocurrency mining activities in the country. Kazakh authorities state they want to clean up the mining industry and channel energy usage toward legal cryptocurrency mining in the wake of energy shortages.
The regulations are a part of an amendment to an order issued by the Ministry of Digital Development, Innovation, and Aerospace Industry, in October 2020. The amendment was signed on April 29. The order requires crypto mining firms to submit documents related to business registration, their IP addresses, the location of the mining facility, and the number and type of mining rigs in the facility.
The miners will also have to submit information concerning the personnel employed, the amount of energy the facility consumes or plans to consume, the planned investments, a copy of the cargo customs declaration, or a document confirming that the mining equipment has been legally obtained, technical conditions related to the electricity supply connection, and a confirmation that all persons involved are residents of Kazakhstan.
The required information has to be filed by miners 30 days before starting operations, and in case they cease operations, the same has to be communicated to the authorities within 10 days of ceasing operations. The existing miners need to file the information every quarter.
The order is a first in the list of regulatory steps which will officially lay down rules for conducting mining business in the country. The industry is now awaiting the licensing and tax laws for cryptocurrencies.
As of now, the order will be used to weed out mining facilities that don’t have proper licensing to reduce the excessive load on the country’s energy grid. Alan Dorjiyev, the president of Kazakhstan’s Association of Blockchain and Data Centers industry, says that this regulatory code is the first step ‘toward officially approving the supply of electricity to legal mining data centres.’
Kazakhstan saw an influx of mining activities after the Chinese crackdown on cryptocurrency mining in early 2021. However, the country has been facing energy shortages since then. The Kazakh authorities had also announced the closure of 106 cryptocurrency mining facilities and the seizure of 67,000 mining equipment costing $193 million in March.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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Backed by Shark Tank's Kevin O'Leary, WonderFi set to acquire Canadian exchange CoinberryRead More..
US Govt Links North Korea to Axie Infinity HackRead More..
Jack Dorsey's first tweet NFT resells for only $280Read More..
Opera crypto browser now available on iOSRead More..
Beanstalk Stablecoin protocol loses $182 million in governance exploitRead More..
Jack Dorsey vs. Vladimir Tenev on Bitcoin transaction feesRead More..
Ripple claims 'a very big win' in SEC caseRead More..
Argentinian town to invest in crypto mining to fight inflation, upgrade rail infraRead More..
Pantera Capital closing fundraise for its blockchain fund after raising $1.3 billionRead More..
Homegrown blockchain co Polygon commits to go carbon neutral this yearRead More..
NBA registers four NFT trademarksRead More..
US crypto expert jailed 63 months for helping North KoreaRead More..
Fortnite developer Epic Games raises $2 billion to build for the metaverseRead More..
Indian companies storm the metaverse and NFT spaceRead More..
Coinbase is producing a movie trilogy on Bored Ape NFTsRead More..
Multiple Indian Twitter accounts hacked, NFT content postedRead More..
German police shut down $1.3 billion illegal darknet firmRead More..
Meta tests sale of virtual goods in metaverseRead More..
Bitcoin 2022 Conference: Bitcoin Maximalists attack national currenciesRead More..
Binance Gets In-Principle Approval to Operate as Crypto Broker in Abu DhabiRead More..
EU limits Russians' crypto investments to 10k EurosRead More..
Coinbase suspends UPI payments in India three days after launchRead More..
From KFC to Tesla, Dell: Crypto-curious corporations struggle to find right recipeRead More..
In Texas, crypto miners turn to solar powerRead More..
South Africa concludes technical Proof-of-Concept for its CBDC settlement systemRead More..
Terra buys $200 million in AVAX for reservesRead More..
Bitcoin will remain as a standard: Chess world champion Garry KasparovRead More..
Coinbase launches in IndiaRead More..
Meta working on virtual money 'Zuck Bucks': reportRead More..
Germany closes Russian darknet marketplace HydraRead More..
Britain paves way to accept stablecoinRead More..
Crypto industry reels from $600 million hackRead More..
NFT of Nelson Mandela's arrest warrant auctioned for $130,000Read More..
Bank of England calls for tighter regulation of cryptocurrenciesRead More..
ECB's Lagarde 'concerned' about crypto use to dodge Russia sanctionsRead More..
Crypto provides fix for some in crisis-hit AfghanistanRead More..
Bitcoin to the rescue: Cryptocurrencies' role in UkraineRead More..
Digital art in spotlight as Dubai makes crypto hub bidRead More..
G7 looks to thwart cryptoassets use as Russian sanctions dodgeRead More..
Can cryptocurrencies give Russia, others breather from economic sanctions?Read More..
Cryptocurrencies enter Russia-Ukraine conflictRead More..
Russia seeks to regulate cryptocurrenciesRead More..
Donald Trump's NFT collection to laud his own presidencyRead More..