David - Cryptocurrency Enthusiast
Kazakhstan, one of the world's largest Bitcoin mining capitals, has recently signed a new law that aims to reduce tax fraud and unlawful business operations in the crypto industry. The law, signed by President Kassym Jomart Tokayev on February 6, 2023, seeks to restore the nation's stance against the unauthorized issuance and mining of crypto assets.
Out of the two pieces of legislation, the first requires secure digital asset issuers to obtain permission from the government. These issuers will also be monitored under the existing law "On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism." This law will take effect on April 1st 2023.
The second legislation focuses on unsecured digital assets, which are often generated through crypto mining operations. To minimize the risk of tax evasion, crypto miners in Kazakhstan will be required to sell at least 75% of their revenue through registered cryptocurrency exchanges. This rule, which aims to gather "information on the income of digital miners and digital mining pools for tax purposes," will be implemented from January 1st 2024 to January 1st 2025.
It's worth mentioning that all crypto mining licenses in Kazakhstan are issued for a limited period of three years and may vary depending on whether the miner owns the mining facilities.
Alongside the introduction of the new laws, Kazakhstan has launched the pilot of its central bank digital currency (CBDC) project, the "digital tenge." In a joint report by the National Bank of Kazakhstan (NBK) and cryptocurrency exchange Binance, NBK deputy governor Berik Sholpankupov expressed the bank's vision of "collaborating between traditional finance and DeFi." He added, "In Kazakhstan, we have started a practical R&D project to explore how our CBDC – Digital Tenge – can bridge the world of crypto with traditional fiat payments infrastructure."
It's worth mentioning that in October 2022, the Astana Financial Services Authority granted Binance a permanent license to operate a digital asset platform and provide custody services.
The newly signed law by Kazakh President Kassym Jomart Tokayev aims to promote a secure and trustworthy environment for crypto asset transactions in the country. This includes creating opportunities for the citizens to buy and sell Bitcoin online with the assurance of both cheap cryptocurrency and trusted Bitcoin options. These regulations are a crucial step towards establishing Kazakhstan as a reputable hub for crypto asset management, where users could confidently engage in cryptocurrency exchange activities.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards