Kazakhstan Considers Crypto Mining a Technological Progression

ASTANA, Kazakhstan – The Kazakhstan government will ponder on cryptocurrency mining as a technological development, not as an economic vocation, as announced on December 4 at Blockchain Day.

Worldwide, governments take their position about cryptocurrencies, as well as its influence on frugality. Some of these administrations pose guidelines, some ban digital assets, while some include taxes. As for Kazakhstan, this country decided not to trail the lead.

According to a report posted by Kursiv, a business application, the government of Kazakhstan will consider digital asset mining as a technological advancement, instead of using for entrepreneurial purposes. This news was shared on December 4, which was a local event called “Blockchain Day.”

Madi Saken exposed information about the stated session. He also added that after the exchanges of digital assets for fiat currency, Kazakhstan’s government would consider putting a tax on it like other funding activities.

Saken is a statutory analyst who’s working under the Data Center Industry and Blockchain Association of Kazakhstan (NABDC).

Governments around the world become more frightened of cryptocurrencies, and it’s one of their reasons behind doubts. The initial idea of making blockchain is to lessen the failings in the money industry, and it comes along with Bitcoin as its proxy. Included in these shortcomings are a total monopoly over the supply of currency and politically-convinced inflation.

Digital assets gave the power to users, wherein all transactions are anonymous. All details about trades are encoded. Moreover, these transactions are for funding partners only, and it excludes the government.

Furthermore, the digital asset goes over any radical or environmental border, and it doesn’t need to ask for permission from anyone. An example is the ability to pay something in one country, even though you’re physically in a different country. It’s one of the incidents why the governments are not convinced.

Kazakhstan shared the necessity to legalize cryptocurrencies, building a crypto-government relationship. On the other hand, this country is taking a diverse approach to mining. It took a positive stance on both blockchain and cryptocurrency.

As for other Central Asia countries, these regions have either less or more optimistic outlook on digital assets. Uzbekistan converted to a cryptocurrency-friendly country last year, wherein the legalized a tax-free digital asset trading. As for Turkmenistan and Tajikistan, the regulation isn’t explicit on blockchain and cryptocurrency, yet the trade is probable in the United States or US dollars. However, Kyrgyzstan had a strict stand against digital coins, wherein the country banned it in 2014.

The governor of Astana International Financial Center (AIFC) mentioned that regardless of the need to standardize digital assets, the country is supported since blockchain has chances for high-tech progress.