Kazakhstan is looking to regulate and welcome the crypto mining industry as it recently submitted its first draft law on cryptocurrency.

The recent Central Asian bill that seeks to provide the appropriate framework for regulating cryptocurrency covers the areas of cryptocurrency mining and cryptocurrency trading.

Cryptocurrency mining in Kazakhstan is still without proper supervision:

announced “Kazinform‘, an international news agency based in Kazakhstan, reported the development on Thursday.

According to the report, the draft cryptocurrency bill was prepared by Kazakh parliament deputies.

Mäjilis is the lower house of the Parliament of Kazakhstan.

Speaking about the bill, Smyshlyaeva Ekaterina Vasilevna, a member of Mäjilis’ Economic Reform and Regional Development Committee, shared more thoughts on the nature and necessity of the bill and the growing need for proper regulation within Kazakhstan’s crypto sector.

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In addition, Smyshlyaeva noted that the bill seeks to address two areas of the cryptocurrency industry in Kazakhstan.

The first area is the cryptocurrency mining sector which has been devoid of effective regulation.

According to “Smyshlyaeva,” the legalization of cryptocurrency mining without proper regulation has led to a random exploration of the country’s energy supply.

She added that while Kazakhstan had legislation that sought to register mining activities, the practice was purely voluntary.

Additionally, it highlighted the fact that the voluntary nature of the registration process has created a dearth of registered mining companies.

As a result, only a third of cryptocurrency mining entities in Kazakhstan are officially registered with the authorities.

Kazakhstan and the need to regulate mining activities:

Smyshlyaeva argues that the country needs to provide a more efficient regulatory framework for cryptocurrency mining.

According to her, this is because the indiscriminate use of mining affects the energy sector.

Overall, the bill seeks to address this.

Smyshlyaeva also acknowledged the benefit of cryptocurrency mining, as it helps bring in revenue for the government via taxes.

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In addition, cryptocurrency mining is a fruitful investment for the economy and will help in the development of the IT sector.

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There is a lack of proper regulation in the cryptocurrency mining industry in Kazakhstan.

In March, Kazakhstan shut down about 106 digital mining companies operating illegally in the country.

The deputy spoke about it, and indicated that this is the second reason behind the introduction of the bill.

She pointed to the fact that current state legislation prohibits cryptocurrency trading in Kazakhstan.

The bill will look to address these shortcomings and ensure proper regulation of the cryptocurrency industry in Kazakhstan.

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