Regulators Tighten Grip on Cryptocurrency Ecosystem
Kazakhstan has introduced new rules for cryptocurrency mining, effective August 1. The country's strategic digital mining framework was approved on July 18, and qualifying miners will receive electricity quotas at capped tariffs for up to ten years in exchange for handing over part of their output to Astana Hub, a state-backed tech cluster.
The coins generated by these miners will then be transferred to the National Bank of Kazakhstan and fed into the new Kazakhstan state crypto reserve, which can hold digital assets, derivatives, and even equity in blockchain firms. This move is not an isolated incident, as Kazakhstan has been building out its digital-mining oversight for a while.
Separately, the European Union has expanded its sanctions against Russia by targeting cryptocurrency platforms that are suspected of helping Moscow dodge earlier restrictions. The 21st sanctions package includes measures to ban transactions on additional platforms and target vessels supporting Russia's shadow fleet.
The UK is also cracking down on cryptocurrency investors, with HMRC recovering over £8 million from 502 investors in the past two years. As part of its efforts to increase transparency, the UK will implement a new reporting framework under the OECD next year, requiring platforms to collect and report user identities, tax residency information, and transaction records.