Cryptocurrency miners in Kazakhstan are to be required to convert up to three quarters of their income on locally registered exchanges, according to a new bill that’s advancing in the nation’s legislature. Lawmakers also want to make sure crypto companies pay their taxes and fees.

Parliament of Kazakhstan Votes on Bill Regulating Activities of Crypto Miners and Exchanges

A draft law designed to create a regulatory framework for both the production and circulation of digital assets in Kazakhstan has been approved on first reading in the Mazhilis. The bill and other supporting documents were prepared and submitted recently to the lower house of parliament on request of the country’s president, Kassym-Jomart Tokayev.

One of the main purposes of the legislation is to establish rules for the operation of a new type of financial institution for Kazakhstan — licensed cryptocurrency exchanges. In order to support these trading platforms, the government plans to oblige crypto miners to exchange up to 75% of their income on them, starting from 2024.

The authorities also want mining pools to pay taxes on their profits and exchanges to pay fees. The authors of the bill intend to impose corporate tax on crypto companies, too. Currently, mining enterprises are only required to pay tax on the electricity they use at rates depending on the amount and price of energy consumed to mint digital coins.

With its subsidized electricity rates, Kazakhstan attracted many mining…