The future of the crypto sphere looks promising as countries around the world are taking a forward step toward legalizing and welcoming the crypto industry. This time it is Kazakhstan’s central authority that now seeks to regulate crypto by drafting its first law.
Crypto Mining Needs To Be Regulated
Kazakhstan aims to dominate the field of digital technology, the crypto industry, and controlled mining. According to a report published today, the Central Asian Nation is willing to regulate the crypto sector, including mining and circulation, as mentioned in the recently drafted crypto law.
The draft was prepared by the authorities of the Kazakh Mäjilis, a prominent sector of the parliament of Kazakhstan.
Mentioning the law, Smyshlyaeva Ekaterina Vasilevna, an official from the Committee for Economic Reform and Regional Development of the Mäjilis, stated some in-depth, valuable points and insights regarding the law, including the requirement of proper regulation in the country and the nature of the bill.
Smyshlyaeva highlighted the sector of crypto mining that the law seeks to regulate appropriately.
According to her, legalizing crypto mining in the country without pre-planned regulations may lead to indiscriminate exploration of electricity consumption.
She also added that though Kazakhstan needs registration for executing mining activities, it will somehow leave some loopholes in the system.
Additionally, the registration process for mining companies in Kazakhstan has led to a scarcity of mining companies. As a result, only one-third of the total mining companies are registered with the Kazakhstan authorities.
Kazakhstan To Provide More Transparency On Crypto
Smyshlyaeva said, “The second is to create a cryptocurrency ecosystem on the territory of the Republic of Kazakhstan,” as the reason behind establishing a crypto law in the country.
She further argued for building a proper regulatory framework that will be more efficient and transparent in the crypto mining sector as the country is now facing an indiscriminate energy supply.
She also agrees with the potentiality and fruitful returns that bring a significant tax to boost the economic structure of Kazakhstan. There is no proper regulation as Kazakhstan has previously banned 106 mining companies for running mining activities illegally.
Kazakhstan carries out its crypto activities with the International Financial Center without regulating it through constitutional laws.
However, Kazakhstan is making bullish moves as it is ready to legalize a technology that will convert holders’ cryptocurrencies into cash.
It is expected that Kazakhstan will follow the trails of other countries in welcoming the crypto space and bringing hope to its crypto community as the law is at the final stage of getting approval.