- The Republic of Kazakhstan has announced that it plans to attract investments worth 300 billion tenges (USD 738.4 million) over the next three years.
- In a report which dates back to 2019 established that investments in cryptocurrency and the returns generated thereof would be exempt from tax.
The Republic of Kazakhstan has announced that it plans to attract investments worth 300 billion tenges (USD 738.4 million) over the next three years in the form of various cryptocurrencies. It will follow the suit of market leaders like the United States of America and South Korea, who have established themselves in the digital payments sector.
During a plenary session, Askar Zhumagaliyev stated that the country has 14 cryptocurrency mining farms situated in Pavlodar, Uralsk, the eastern and northern regions. Investments worth 82 billion tenge (USD 201.7 million) have already been made in the past which have been beneficial for the country in more ways than one.
Kazakhstan Cryptocurrency Tax Policy
In a report which dates back to 2019 established that investments in cryptocurrency and the returns generated thereof would be exempt from tax. It was a major breakthrough for miners as their tax liability reduced by a significant amount. The Kazakhstan government has kept in mind the reduction of fraud and lower fees as key factors for the cryptocurrency driven investment.
A sense of security prevails among users that their digital assets are safe due to the complex nature of such currencies. Another benefit that cryptocurrencies offer is the elimination of middlemen for trading-related activities. A group of miners agrees on a particular block to upgrade themselves to a new one. In return, they receive cryptocurrencies available in that particular network. It has gained significant universal recognition for new entrants like Kazakhstan to make a market for themselves.
Although a law that bans the use of digital currency has not been enacted yet, the activity of crypto mining does not come under the purview of entrepreneurial activity. The Republic also plans to invest the funds in crypto mining which will be crucial in the expansion of the digital sector. The National Bank of the Republic of Kazakhstan addressed concerns about losing all the digital assets in a goo which might be detrimental for all the users. It has reiterated that the currencies are very unreliable which is why people still prefer fiat currency over the former. As such there are no laws that regulate the circulation and production of cryptocurrencies.