Kazakhstan eyes up the potential of its mining community

The legislation bans unsecured digital assets, with an exception: "except as otherwise provided by law." The draft doesn't ban mining because it doesn't classify the activity as entrepreneurial work. Zhumagaliyev told senators that mining operations had spread across Kazakhstan and drew enough participants to merit discussion.

Fourteen digital farms operate in the north, Pavlodar, East Kazakhstan, and Uralsk near energy sources. These farms have generated 82 billion tenges ($201.7 million) in investments. "According to the report that we have prepared with international experts, we expect another 300 billion tenge (US$738.4 million) in the next three years as digital investments and in general, the further development of digital mining," Zhumagaliyev said. He added: "I would like to note that there are 14 such digital farms in Kazakhstan and they are built near energy sources that can connect to them. They have already brought 82 billion tenges ($201.7 million USD) of investments in the country."

The draft also establishes a government body to oversee personal data. Its role involves regulating how people and businesses use digital technologies, supporting information and communications technology projects, and building a national video surveillance system. The Senate passed the law, but it requires presidential approval.

Blockchain operations will fall under existing tax rules. The draft creates no new regulations for the technology.