Kazakhstan: Why Crypto Miners Need Amendment of Registration Rules

The government of Kazakhstan has amended how individuals and businesses register to mine cryptocurrency. The new regulations are part of a broader crackdown on the mining industry in Central Asia, where lack of electricity has been blamed on the influx of miners. Crypto Miners to File Quarterly Reports with Kazakhstan Authorities Bagdat Musin, Kazakhstan’s digital development minister, has made it more difficult for people who mint digital coins to register and report. If a company or legal entity wishes to mine cryptocurrency, it must notify regulators at least 30 days in advance. The same is true for businesses and those who provide services to them. Cryptocurrency miners must now provide their company’s name, registration number, contact information, bank details, and IP addresses. They must also explain how much energy their mining facilities consume, what investments they intend to make, and how many employees they employ. Copy of customs declarations or other proof of ownership of mining equipment, proof that the people working on the project live in Kazakhstan, information about the location of the mining farm in Kazakhstan, and a technical description of the hardware’s connection to the power grid. Every three months, the government requires similar reports from existing miners and the companies that keep them running. In addition, mining companies that decide to stop operations must notify the state within ten days. W...