Kazakhstan Offers Three-Year Tax Reprieve for Crypto Traders

Kazakhstan has introduced a three-year tax exemption for individual investors on capital gains from trading digital assets. The exemption is part of a framework aimed at bringing digital asset trading and mining into the regulated system, as reported by blockchain media outlet Cryptopolitan.

The measure was jointly prepared by the Ministry of AI and Digital Development, the National Bank of Kazakhstan, and the Astana International Financial Centre (AIFC). It will exempt individual investors from paying personal income tax on profits earned from trading digital assets for three years. Assets linked to fraud, money laundering, or unlicensed cryptocurrency services are excluded from the exemption.

The government expects around 1 million cryptocurrency wallets to move from overseas platforms to licensed domestic exchanges due to this measure. As of March, Kazakhstan citizens held about 1 million cryptocurrency wallets, while registered users of licensed local exchanges stood at 256,900. The move is also aimed at reducing the dominance of peer-to-peer trading and overseas platforms in the market.

The presidential decree also includes measures to prevent new mining demand from flowing directly into the public power grid. It allows oil and gas fields to feed associated gas that the country does not use into self-generation facilities and divert the electricity to mining. A '70-30' model is introduced, letting data centres and mining firms directly use up to 70 percent of new power added through infrastructure upgrades.