National Bank of Kazakhstan is Interested in Crypto

Central banks are closely monitoring the cryptocurrency market, and Kazakhstan’s central bank is also willing to learn more about the cryptocurrency market.

The chairperson of the National Bank of Kazakhstan discussed the cryptocurrency market during the press conference. According to Galymzhan Pirmatov, Kazakhstan intends to extract profit from technology in the cryptocurrency industry. In remarks, the head of the central bank stressed the attraction of innovation and then reserved comment on the possible macroeconomic instability that it poses.

He doesn’t think that the central bank is late to the game. Galymzhan Pirmatov didn’t give away any details on the central bank’s possible position on crypto. He warned that although discussions about legalization are planned, it is too early to discuss legalization.

The approach is very simple, said Pirmatov. We are not going to ignore the market. Kazakhstan’s National Bank seeks the “maximum profit from the innovative potential these technologies give us”, stated Pirmatov.

In an exclusive interview, the boss of the country’s central bank revealed information about its initiative to release a new form of central bank digital currency (CBDC). The country’s central bank still intends to publish the design methodology of the new digital currency, dubbed Tenge, by the end of June. This project’s implementation will reportedly be decided according to that methodology before the end of 2022.

Kazakhstan and crypto mining

Crypto mining and Kazakhstan Last month, the lower chamber parliament of the Kazakh, passed in its first reading amendments to the national tax code, regarding the taxation of crypto mining.

Mejlis amended tax legislation that mining entities have to pay is dictated by the rates of electricity consumed.

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For example, if you purchase the cheapest form of electricity, ($0,012-0,024) Kwh for 5 to 10 tenges, would come with an additional burden of ($0,024) for 10 tenges. In the case of ($0,024-0.036) per Kwh for 10-15 tenges, the tax would for ($0,017) KWH would be be 7 tenges ($0,048-0,060) per Kwh would be and for 20-25 tenges – ($0,0072) for 3 tenges.

The government of Kazakhstan is not happy with the current situation. Recently, the country’s government reported how much they make from mining cryptocurrency.

The largest crypto mining market in the world, created about 652 million tenges ($1.5 million) from crypto mining in the 1st quarter of the year, after the government initiated a digital mining fee on 1st January of 2022.

The country’s state revenue committee stated that not all of the expected fees have been received. This is due to the closure of a significant number of cryptocurrency mining firms as the government has tried to prevent the countries from lacking in energy resources. Additionally, the government committee is discussing increasing fees for cryptocurrency mining, according to their crypto bill.

Moreover, there is no reporting by the country’s tax code on digital mining-related payments.

As such, last year, Kazakhstan’s Data Center Industry and Blockchain Association calculated that mining cryptocurrency could lead to $1.5 billion in revenue for the country in the next five years.

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