Bitcoin Miners in Kazakhstan Face Formal Tax Obligations Starting 2024

Kazakhstan is set to implement significant changes for Bitcoin and other cryptocurrency miners starting in 2024, formalizing their tax obligations and increasing transparency within the industry. In a recent report by Tass, a prominent Russian media agency, the Kazakh government intends to roll out a legal framework exclusively for cryptocurrencies like Bitcoin. This move aims to bring clarity and structure to the burgeoning crypto mining sector in the country.

Crypto mining in Kazakhstan is subject to income tax, and there may be VAT implications depending on the scale of operations. Special tax conditions apply to large mining operations, indicating a tiered approach to taxation.

Increased Scrutiny and Revenue Tracking

To reduce the possibility of tax evasion, crypto miners in Kazakhstan will be forced to sell at least 75% of their revenue via registered crypto exchanges. This regulation is designed to provide greater visibility into miners' earnings and ensure accurate tax collection. This will significantly impact how miners operate and manage their finances within the country.

Digital Mining License Fees and Timeline

A license fee for a digital mining license issued from 1 April to is payable by digital mining entities. This provision applies only to the licenses issued in 2025. Starting from this period, all miners will need to secure the necessary licenses and adhere to the new regulatory framework.

Implications for Bitcoin Mining in Kazakhstan

These changes signal a maturing of the cryptocurrency landscape in Kazakhstan. While increased regulation and taxation may present challenges for some miners, it also offers the potential for greater legitimacy and long-term stability for the industry as a whole. Miners operating in Kazakhstan should prepare for these changes by ensuring they are compliant with the new regulations and understand their tax obligations.