Kazakhstan is moving forward with new legislation to control cryptocurrency miners in the country.
The federal parliament of Kazakhstan, known as the Majalis, has passed the “On the Digital Assets of the Republic of Kazakhstan” law through its second reading and given it its approval.
The law will now be read for a third time, which is the last step before it is put to a vote.
The new legislation will institute new licensing regimes for crypto miners, with the distinction being made between those who run their own facilities and those who rent them from other companies.
In addition to that, miners would be recommended to buy their electricity from the shared grid at market prices through energy provider Korem. This need comes as a result of earlier particular charges imposed on the amount of electricity consumed by miners.
Bitcoin Miners Converge In Kazakhstan
As a result of China’s decision to outlaw cryptocurrency, a large number of miners flocked to Kazakhstan, which is blessed with abundant supplies of inexpensive electricity.
The most reliable statistics on Bitcoin’s worldwide hashrate can be found on Cambridge’s website.
The data, however, has not been refreshed since January and continues to identify Kazakhstan as one of the most important sources.
Kazakhstan introduced a new reporting and taxing regime for crypto miners in January after months of demonstrations in the Central Asian nation resulted in the president announcing a blackout of the internet.
This resulted in a 12% reduction in the hashrate of the Bitcoin network during the month of January.
Moreover, Changpeng Zhao, the Chief Executive Officer of Binance, made the announcement that the National Bank of Kazakhstan (NKB) intends to incorporate its Central Bank Digital Currency (CBDC) Digital Tenge into the BNB after Binance obtained a permanent license from AFSA to become a regulated platform in Kazakhstan