The government of Kazakhstan has laid out new reporting requirements compelling cryptocurrency mining operators to register their operations with authorities.
The order posted by the country’s Minister of Digital Development asks digital mining ventures to submit information 30 days before starting operations.
All miners will have to provide business registration data, information about personnel, the energy they consume or plan to consume and IP addresses used.
The information related to their planned investments, the location of the mine, a copy of the cargo customs declaration or a document confirming the legality of the equipment must be submitted by the operators.
The order also asks the operators to submit technical conditions for connection to the electricity supply and documents proving the involved individuals nationality as Kazakhstan and other documents.
Also, the mines that close down will have to inform authorities within 10 days of stopping operations. Existing miners must file the mandatory information every quarter.
The guidelines come as an amendment to an order from the Ministry of Digital Development, Innovation and Aerospace Industry from October 2020. The order was signed on April 29.
Alan Dorjiyev, president of Kazakhstan’s Association of Blockchain and Data Centers Industry said that this is the initial step towards officially allowing the supply of electricity to legal mining data centers. The national grid operator cut off energy to mines in January.
The order demanded that existing miners must also inform authorities about the number and type of mining rigs used.
Kazakhstan has reportedly been dealing with power shortages. This is partially due to the growing number of crypto miners to the energy-rich state. Authorities have been trying to clamp down on mining with no proper licensing to take the load off from the country’s energy grid.
In March, the authorities announced the shut down of 106 mines, seizing 67,000 machines worth $193 million.
Additionally, new licensing and tax laws are also expected soon.
Recently, the Regulation and Development of Financial Market of Kazakhstan also revealed a pilot project for the development and operation of crypto exchanges in the AIFC.
