Kazakhstan To Attract $738 Million Of Cryptocurrency Investment in Three Years

The Republic of Kazakhstan continues to maintain its bullish stand on cryptocurrencies and crypto mining operations. The central Asian country is planning to attract millions of dollars of investments to its domestic crypto industry within the next three years, local media reported Tuesday.

Askar Zhumagaliyev, Kazakhstan’s Digital Development, Innovation, and Aerospace Industry Minister, made this known while addressing the Senate in a June 11 plenary session.

Crypto And Mining Are Part Of Everyday Live

The minister said they had studied the mining experience of countries like the United States, Sweden, and South Korea, and they have seen that cryptocurrencies and crypto mining have become part of everyday life.

Kazakhstan already has 14 crypto mining facilities, most of which are located in Pavlodar, Uralsk, and in the country’s northern and eastern regions. According to the minister, these mining farms have already generated 82 billion KZT ($201.7 million) of investments.

Kazakhstan To Attract $738.4 million Of Investment

However, the nation is looking to bring fresh investments to further develop its crypto mining sector and the crypto industry in general. Zhumagaliyev said they prepared a report for this purpose with the help of international experts with expectations to attract an additional 300 billion KZT ($738.4 million) of investment in the next three years. According to him, the investments will cut across digital currencies and their mining operations.

The Senate also discussed the current bill regarding the regulation of digital technology, including crypto assets. The draft law explicitly prohibits the issuance and circulation of unsecured cryptocurrencies unless “otherwise provided by law.”

Additionally, the bill, which has already been adopted by the Senate, does not ban crypto mining as it does not see it as an entrepreneurial activity.

The minister noted that many Kazakhstanis are going into crypto mining, and he believes the sector has a potential for growth.

Kazakhstan Going Big On Bitcoin Mining

As reported earlier this month, Kazakhstan is quickly becoming a significant player in the Bitcoin mining industry as hash rate coming from the country surged by 334% since the start of the year. Kazakhstan now controls 6.17% of the global Bitcoin’s mining power from a low of 1.42.%

This “unexpected” surge came after the country announced in December last year that crypto mining operations would not be subject to taxation until operators convert mining rewards to fiat. However, the report did note that mining farms would be taxed like other technological data centers.