Recently, the Digital Almaty 2023 Forum was held in Almaty. Participants discussed in detail the "Digital Assets Law", which has been approved by the parliament and will come into effect on April 1, 2023 after the president signs it. What are the prospects for the development of currency exchanges? According to the conference speakers, 2022 will be very difficult for cryptocurrencies, as all economic sectors are slowing down, which also affects the blockchain and cryptocurrency industry, which is an integral part of the global economy.

Digital mining is limited

Kazakh companies operating in the digital industry also face huge challenges, said Sapar Akhmetov, head of the Kazakhstan Blockchain Technology Association. Mining companies have mostly left Kazakhstan, only loyal market players remain.

But in 2023 we see positive trends, clear rules of the game that Kazakhstan is working out. It is necessary to introduce the circulation of cryptocurrencies, taking into account security issues, and creating conditions to combat money laundering. Also start thinking about launching a science education program, because there are a lot of cryptocurrency trading scammers in the market, so it is necessary to educate citizens about science.

The number of Kazakh citizens registered on international cryptocurrency exchanges and participating in cryptocurrency transactions has exceeded 1 million, which means that 1 out of every 19 Kazakhs is engaged in cryptocurrency transactions. But at the same time, almost all operations related to cryptocurrencies are in the shadows, that is, outside the scope of legal supervision in Kazakhstan.

To do business you have to pay taxes

Gutizat Bytursenov, deputy director of the Kazakh Electronics Industry and Digital Assets Industry Development Department, pointed out that the purpose of the "Digital Assets Law" is to solve the legal supervision of Kazakhstan's digital mining industry and make it transparent change. Cryptocurrencies are used as a means of payment in many countries, Bytursenov said. In our country, the National Bank is not ready yet, but I think, in the future, we will get to this point.

At present, miners in Kazakhstan mainly focus on foreign mining pools, so relevant departments cannot understand and publish the actual income of digital miners. Essentially all digital wallet owners are outside of Kazakhstan, and all mined cryptocurrencies go abroad. In fact, Kazakhstan is only engaged in the maintenance of digital equipment.

Now, as part of the bill, we have introduced a mechanism to certify mining farms, and one of the conditions for certification is to present the income of each miner, Zizat said. That means knowing what their income is, and we'll tax them accordingly. He also said that in Kazakhstan, every entrepreneur who engages in certain activities pays taxes. Miners are also considered entrepreneurs by the Kazakh authorities.

Mining pool energy shortage problem solved

Talgat Temirkhanov, chairman of the Kazakhstan Electricity Association, said mining activities are not a priority in Kazakhstan because mining equipment consumes a lot of electricity while creating fewer labor jobs. In some cases, the capacity of a mining farm reached 200-300 MW. This is the consumption of a mature factory. Therefore, the Ministry of Energy sets annual quotas.

Timirkhanov said that for us, mining companies and factories are the same consumers of electricity. In 2019-2020, we announced, come, come to Kazakhstan. We have cheap electricity. As a result, we are the second most attractive place to mine for mining after the United States. Before the miners came, we had 2000-2500 megawatts of excess power, which was exhausted within 2 years.

The president of the association said that mining companies were responsible for much of the deficit. Energy shortages will continue in the next 5-7 years. But this situation does not mean not to develop the mining industry, not only to be a miner, but also to be a power engineer. In this regard, he believes that the best solution is to install small power plants, around 50-100 MW, like those in China and Europe. Editor/He Yuting