The government of Kazakhstan has assigned new reporting requirements on cryptocurrency mining firms, focusing on how the industry’s energy use impacts the country’s power grid.
The country’s Minister Malik Olzhabekov, of Digital Development issued an order earlier this week requiring digital mining companies to disclose detailed information 30 days before beginning activities.
Before operations may begin, the electricity usage and “technical specifications” for connecting to the power system must be submitted. The number and quality of mining tools used, as well as customs cargo declarations for that equipment and any future investments for the next 12, must be included.
Miners must also give information about the legal organisation carrying out the operation, which must be a resident of Kazakhstan, as well as contact information, physical and IP addresses utilised in its activities, according to the new reporting criteria.
The same data will have to be updated and presented in a mandatory quarterly report, and firms that are closing down mining activities will have to declare when they do so.
The most recent order is a modification to a previous order issued by the Minister in October 2020 that established standards for sharing information on digital mining activities.
In February, proposals were presented to raise power rates and boost taxes on crypto miners, proposing a 335 percent increase in electricity bills as well as abolishing the VAT exemption on mining equipment and taxing each piece individually.
Kazakhstani officials have been trying to track down illegal cryptocurrency mining activities in the country due to the strain they create on the country’s electrical supply. Following investigations by the Financial Monitoring Agency in March, 106 illegal crypto mining enterprises were shut down, with over 67,000 pieces of equipment seized.
