The Government of Kazakhstan has revised the requirements for the registration of individuals and companies engaged in cryptocurrency mining. The new rules were adopted against the background of a sharp influx of miners into the country. Now they are blamed for the lack of electricity. After the introduction of a complete ban in China on mining and owning cryptocurrencies, many began to look for new places with cheap electricity and loyal legislation. Kazakhstan has become this haven. Last year, the authorities have already introduced several restrictions imposed on miners, however, as time has shown, this was not enough.
Now crypto miners will submit quarterly reports to the authorities of Kazakhstan. According to the order of the Minister of Digital Development of Kazakhstan, the registration and reporting requirements for those engaged in cryptocurrency mining have been expanded. The document obliges individual entrepreneurs and legal entities who intend to mine cryptocurrency to notify regulators at least 30 days before the start of the activity. The same applies to firms and persons providing services to such enterprises.
Now cryptocurrency miners are being asked to provide data, including the name, registration number, and contact information of their companies, as well as their bank details and IP addresses. They will also have to indicate the necessary energy needs of their mining farms, planned investments, and the number of employees. Among the required documents are copies of customs declarations or other documents confirming ownership of mining equipment, documents confirming that the persons participating in the enterprise are residents of Kazakhstan, information about the location of the mining farm in the country, as well as a technical description of how the equipment will be connected to the power grid.
All this creates quite serious difficulties for the development of this industry in the future since most of the equipment was imported according to gray schemes and without proper documentary confirmation. Miners who have already started work are required to submit similar reports to the government for each quarter. In addition, companies going out of business will have to notify the state within ten days after the termination of their activities.
As noted above, all these actions are aimed at tightening measures for the extraction of cryptocurrencies a year after Kazakhstan became a magnet for foreign miners after the ban on this activity in China. Currently, although the government is pursuing illegal miners, even authorized bitcoin farms are suffering from power outages caused by its growing shortage.
Dozens of mining facilities have already been closed this year alone. It is expected that in the near future the authorities will increase the tax burden for those who remain in Kazakhstan by linking the fee to the value of the extracted digital currency.
Bitcoin rose yesterday after investors' fear eased due to the Federal Reserve's decision not to force events and not resort to a tighter monetary policy. At the moment, for the development of the initiative on the part of the bulls, active actions are needed in the area of $ 40,800, which will quickly return the trading instrument to $ 42,700, allowing investors to calm their nerves a little. Equally important will be the protection of the intermediate level of $ 39,300, which sellers are now looking at. The fact that bitcoin continues to enjoy support from major players is likely to mitigate its fall, which may occur if the bulls do not offer anything at $ 39,300. The decline of the US stock market, as well as the sharp drop in the NASDAQ technology index, will surely pull bitcoin down with it. A breakdown of the $ 39,300 level will fail the trading instrument below, to a minimum of $ 37,750, and there you can reach up to $ 35,990. The bears' furthest target will be the $ 34,350 area.
The focus remains on the $ 3,000 resistance. A breakout of this level will quickly return the ether to $ 3,158, and then very close to $ 3,306. The 200-day moving average passes in the area of $ 3,480, which will also be a serious problem for traders. Only the consolidation above will continue the upward trend for the trading instrument with the prospect of updating the highs in the areas of $ 3,540 and $ 3,685. In the event of a return of pressure on ETH, purchases in the area of large support of $ 2,800 are not excluded, as it has been recently. A break in this range will be the reason for a hike to the lows of $ 2,660 and $ 2,500, where the major players will begin to actively act again.
