The House of Representatives is set to deliberate on the passage of a bill that will make crypto mining in Kazakhstan become a legal business. This is amidst the country being seen in the spotlight as a new hub for crypto mining.
An emerging hub for crypto mining in Kazakhstan
Kazakhstan is seen as an emerging hub for crypto mining because of low electricity prices in the country and good weather the country has. The electricity rate in the country is estimated at 2 or 3 cents per kilowatt-hour. This is affordable and reasonable, unlike other countries.
Once the legislature passes the bill, the crypto community and crypto mining in Kazakhstan is to shift focus to the country. Regulations are going to be easy, and crypto mining in Kazakhstan would have government backing. Reportedly, the county has been working towards institutionalizing crypto mining since 2018. Kazakhstan government has opened doors for cryptos, blockchain, and Distributed Ledger Technology (DLT).
Towards the end of last year, a blockchain association legislative analyst in the country Mardi Saken noted that the government is reviewing a draft law that will ensure cryptos and mining activities in the country are not taxed.
Other countries looking to explore crypto mining
Crypto mining in recent times has become a thing several developing countries are looking to activate and pay attention to the industry. Recently, Iran was reported to make its laws favorable to draw crypto miners from all corners of the globe. Iran did that to bypass strict sanctions that were imposed on the country by the U.S.
However, Iran also ensures that it regulates the industry to curb smuggling money out of the country and stop several illegal activities that crypto might enable.
Another country looking to explore crypto mining potentials to boost the country is Ukraine. Ukraine’s energy minister, Oleksiy Anatoliyovych Orzhel, is planning that energy surplus the country’s nuclear power plant generates is diverted towards crypto mining. The country began to explore this option when an illegal mining farm was exposed in one of the country’s nuclear plants. It is even said that profit made from crypto mining in Ukraine would be used to fill the state budget.
Kazakhstan plans its own CBDC
Apart from trying to explore crypto mining on the national level, the country is in the process of launching its digital currency too. Kazakhstan’s president unveiled plans for this in 2018, Nursultan Nazarbayev.
Nazarbayev planned this to end financial and economic wars and also slump market volatility. However, since Nazarbayev resigned, there has not been any update about the project.