The Kazakh government has set a goal of attracting $ 738 million from investments in cryptocurrency mining activities over the next three years.
According to the June 16 Astana Times, Kazakhstan’s Minister of Digital Development, Innovation and Aerospace, Askar Zhumagaliev, unveiled the plan in an address to the upper house of Kazakhstan’s parliament.
Following in the footsteps of the United States and South Korea
During a parliamentary session discussing a possible ban on the issuance and distribution of cryptocurrencies, Zhumagaliev highlighted the progress of countries such as the United States, Sweden and South Korea in the field of cryptocurrencies and digital mining.
He added that this sector is also growing in Kazakhstan, as there are currently 14 cryptocurrency farms in the country, which have attracted approximately $ 201.7 million in investments.
“According to the report we have prepared with international experts, we expect another 300 billion tenge ($ 738.4 million) over the next three years, ” Zhumagaliev said.
Excavation of cryptocurrencies free of charge
The bill, which is being discussed during the parliamentary session, does not prohibit cryptocurrency mining activities in the country.
In December 2019, it was announced that lawmakers in Kazakhstan will not tax taxes on revenues generated from the extraction of cryptocurrencies, as tax liabilities are applicable only to income earned from “real money” . This is because Kazakhstan does not view cryptocurrency as an entrepreneurial activity, but as a purely technological progress.
It was also noted that cryptocurrency farms that used digging hardware to offer cryptocurrency services are still taxable in the same way as data centers.