The Kazakhstan Association of Blockchain Technologies and Data Centres has revised specific regulations of Kazakhstan’s tax legislation, which previously hindered the development of digital mining and digital asset exchanges.

The association collaborated with the key government bodies and the Parliament to review some taxes and payments over six months.

As a result, President Kassym-Jomart Tokayev signed the law on amendments and additions to tax legislation on Dec. 12.

If previously the rate of payment for digital mining for consumption of 1 kilowatt/hour of electricity was paid differentiated (depending on the cost of electricity) in the amount of 26 tenge, then from Jan. 1, 2024, the number of payments for consumption of 1 kilowatt/hour of electricity by digital mining will be fixed at 2 tenge.

The payment rate for digital mining for consumption of 1 kilowatt/hour of electricity when using its generating facilities, the amount previously 10 tenge, will subsequently be revised to 1 tenge.

Digital asset exchanges registered in Kazakhstan are henceforth exempt from paying the value-added tax (VAT) on digital asset transactions. The previous obligation to pay VAT put Kazakhstan’s digital asset exchanges in a non-competitive position in the global market of digital asset turnover. The cancellation of VAT is timely and justified.

The article 264 of the Tax Code was also excluded due to the duplication of existing regulations.

Our association will continue to work on creating a transparent digital asset industry in Kazakhstan. For this purpose, we monitor the existing legal regulations to identify and revise those that hinder the regular development of the digital asset industry.

The author is Dauren Karashev, the chief executive of the Kazakhstan Association of Blockchain Technologies and Data Centers.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.