Kazakhstan’s updated regulations come amid a broader crackdown on the crypto mining industry in the Central Asian country, where the influx of miners has been blamed for persistent power shortages.
Bagdat Musin, Kazakhstan’s minister of digital development, issued an order expanding the registration and reporting requirements for those minting digital coins. Individual entrepreneurs and legal entities intending to mine cryptocurrency must notify regulators at least 30 days before beginning operations, according to the document. The same is true for businesses and individuals who provide services to such businesses.
Cryptocurrency miners are now required to submit information such as their company’s name, registration number, and contact information, as well as their bank details and IP addresses. They must also specify the energy requirements of their mining facilities, as well as the planned investments and the number of employees.
Copies of customs declarations or other proof of ownership of mining equipment, documents confirming that the persons involved in the undertaking are Kazakhstan residents, information indicating the location of the mining farm in the country, and a technical description of how the hardware will be connected to the power grid are among the required documents.
Miners who have already begun operations, as well as their maintenance providers, are required to file similar reports with the government every quarter. Additionally, mining companies that cease operations must notify the state within ten days of ceasing operations.
The new reporting requirements come as the authorities in Nur-Sultan continue to crack down on the crypto mining industry, a year after Kazakhstan became a magnet for miners in response to China’s anti-mining offensive. Although the government has targeted illegal miners, even authorized Bitcoin farms have been impacted by power outages caused by the growing electricity deficit.
Several companies have already left the country due to the shortages, and dozens of mining facilities have been closed this year, with many remaining unplugged.
Auditors have also been attempting to close tax loopholes exploited by some miners, while authorities are preparing to increase the tax burden on those who remain in Kazakhstan, with the levy being tied to the value of the newly minted digital currency.