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Kazakhstan to ban transfer between anonymous electronic wallets

Author: LB 2020-06-12 206

There are more and more countries in the world where web and smartphone based applications to transfer funds without uncovering our identities are getting popular. These digital solutions can be extremely handy when we want to move our money, but we would prefer to hide our personal information, however in certain cases this can be risky.


The media agency, kurziv.kz based in Kazakhstan has recently published an article on anonymous electronic transfers.


According to the agency's report the government of Kazakhstan is planing to ban anonymous electronic transfers in order to increase transparency in the country's economy and also to prevent prevalent frauds and scams in the financial world.


This is interesting because, several other countries with China among them are working on development projects to realize infrastructures that would support offline peer-to-peer fund transfers. Therefore the attitude towards electronic payment and transfer differs very much by countries.


The government of Kazakhstan is planning to enforce stricter rules governing user authentication. They are also working on law proposals to ban anonymous electronic transfers, to limit the amount of funds for each transfer, but they are also proposing new plans to widen electronic payment options both in the private and in the corporate sectors.


The new regulations were proposed by Sergei Simonov (Симонов Сергей Анатольевич) and these new rules should regulate the exchange of foreign currencies and other financial regulations in Kazakhstan.


According to the politician, illegal money transfers need to be prevented and the concomitant responsibility should be taken by the operators who provide these payment options.


These regulations will also authorize the National Bank of Kazakhstan to determine the minimum capital for a company which provides these payment solutions to operate.


Blockchain technology in Kazakhstan


Sergei Simonov's proposal seem to contradict to government's recent actions. Oddly enough, Kazakhstan decided not to impose taxes on Bitcoin mining related activities reports the same site. The current capital, Nur-Sultan hosts several Blockchain related conferences and according to kurziv.kz these new regulatory actions will trigger Blockchain based developments.


Cryptocurrency mining in Kazakhstan


There are currently several regulatory changes in the country that will deem cryptocurrency mining a non-business type of activity. They will treat mining as a purely technological process and they will impose no taxes on mining related activities. Taxes will have to be paid only when revenue appears in a form of fiat currencies, or in other words when the miner sells the on a cryptocurrency exchange. The payable tax will be determined based on amount expressed using a fiat currency.


If a Bitcoin miner purchases hashing power to mine cryptocurrency, that would also be deemed as a business-type of activity. In this sense, these rules could be applied for mining companies and data centres and taxes could be imposed in traditional ways.


As electricity is comparatively cheap in the country and there are many active investors investing into cryptocurrency mining, it would be expedient to tweak these regulations so that Blockchain related developments would not wither but rise.


Electricity prices in Kazakhstan


It is worth to have a look at electricity prices in Kazakhstan. We can find this data on the following site: zakon.kz. If we want to use 100 kW of electricity we would have to pay 1488, 1868, 2335 Kazakhstani tenges.


The different values represent different time frames during the day.


This means that for 1 kW we would have to pay approximately 0.036-0.0565 USD or kW in Kazakhstan.


Clearly, on the whole world's scale electricity is very cheap in Kazakhstan and the country seems to be a good option for those who are planning to open their cryptocurrency mines.


Illustration: pixabay


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