Cryptocurrency business in Kazakhstan in 2021
Kazakhstan became the new mining capital after China reduced its involvement in bitcoin mining, declaring it an undesirable activity. The financial well-being of miners was at risk, and a lot of people decided to move to the neighboring country, Kazakhstan. Its advantages include cheap electricity and the ability to legally create crypto-farms without any barriers from the side of the authorities.
How cryptocurrency activity is regulated in the country
Digital coins are not banned in Kazakhstan, but they are not legal payment instruments. Mining is profitable for Kazakhstan, so the authorities began to take steps to help maximize profits from the current situation. They have legalized the mining of digital coins, and now there are 13 crypto-farms officially operating in Kazakhstan, and 4 new ones are being built.
Tax legislation regarding cryptocurrency activities has not been developed yet. To keep the crypto-industry in the shadows, the authorities are moving in this direction. They started with electricity. Miners will now pay an additional 1 tenge per kWh. Nevertheless, the price compared to other countries differs favorably.
Kazakhstan does not prevent the cryptocurrency business because it is interested in mining:
- In 2020, mining attracted KZT60 billion in investments to Kazakhstan.
- Miners who work in Kazakhstan produce 6% of bitcoin, the world's main cryptocurrency.
- Mining digital coins requires a huge amount of energy. The country has it, and even in excess. Cryptobusiness in Kazakhstan in 2021 allows you to successfully dispose of excess electricity, and earn on it.
- Data centers, servers where information from all over the world is stored, began to develop in parallel with mining in Kazakhstan. Now there are 32 data centers opened in the country, and 34 billion tenges were invested in their construction.
How to open a crypto business in Kazakhstan
A cryptocurrency license is not yet needed in Kazakhstan. When digital mining was legalized in the country, having prescribed its functions by law, the authorities did not have time to enter it into the Classification of Types of Economic Activity. If you want to start a cryptocurrency business in Kazakhstan in 2021, contact IT-OFFSHORE specialists.
The list can be updated every 4 years, and the last changes took place at the end of 2020. Therefore, there is no "mining" item in it now and will not be added in the next 3 years. People who work in this field can simply indicate that they are engaged in the industry related to mining when applying for documents.
Since mining is not a fully licensed activity, it is not necessary to run for permits. But if you want to work legally, you have to inform the Committee for Digital Development. When importing equipment, you have to get permission from the NSC (National Security Committee), as it relates to encryption equipment.
Although cryptocurrency is not popular in Kazakhstan, authorities plan to allow transactions with digital assets. A pilot project is being developed, under which crypto exchanges registered on the basis of Astana International Financial Centre (AIFC) will work with banks. This will allow officially and openly operating with cryptocurrency. There is no exact information relevant for the banks yet.
How to work with digital money in Kazakhstan
Prior to the launch of the project, there are several legal schemes by which you can buy/sell digital currency. To do this, it is necessary to have an account at one of the cryptocurrency exchanges, which are registered on the AIFC platform. It is also possible to open a bank account in Kazakhstan, which has received permission for cryptocurrency activities from AIFC.
Individuals have the right to buy cryptocurrencies without proof of income, as long as it is up to $2,000 per month. If you expect a larger turnover, you must register as a legal entity, followed by opening an account in one of the banks registered with AIFC Astana.