"The government must create the right conditions." The expert urged not to abandon Tokayev's ideas about digitalization and the crypto industry

Date: 12.12.2022

The President noted that the digital potential of Kazakhstan can be used as an experience to improve the economic integration of the EAEU

Last week, Head of State Kassym-Jomart Tokayev took part in the regular meeting of the Supreme Eurasian Economic Council (VEEC) In Bishkek, he voiced the issue of improving the process of economic integration, fully consistent with the EAEU treaty.

"There can be no question of any slowing down of integration processes on the part of Kazakhstan. Kazakhstan, on the contrary, is making every effort to improve and optimize the process of economic integration in full compliance with the EAEU Treaty in the interests of all member states of the Union and, of course, taking into account the national interests of our country. Our peoples, the people of Kazakhstan, and especially entrepreneurs, should really feel the beneficial fruits and results of such integration. We are concerned about the "stalling" of processes in certain areas. In particular, we are talking about the digital agenda of the union. Meanwhile, Kazakhstan has advanced far enough in this direction. According to the UN, our country is among the thirty most digitized countries in the world. More than 90% of public services in Kazakhstan are provided in electronic format," Tokayev said.

The Head of State noted that Kazakhstan has created legislative bases for the development of IT technologies and innovations, and an international technopark of IT startups is operating.

"The crypto industry is developing, the digital tenge is being introduced. I believe that this experience could be used to develop integration and create projects of a common Eurasian scale. Our task as a Union is to become a leading player in the field of new digital technologies, the crypto ecosystem, and fintech. And this task is quite feasible. Moreover, Russia, Belarus, and Armenia have historically had considerable experience in such areas. We call on the participating countries to strengthen their work in this direction," the head of state said.


According to Sapar Akhmetov, Chairman of the Board of the Kazakhstan Association of Blockchain Technologies, numerous changes are being made in the country and laws on the development of mining and the crypto industry are being adopted. Kazakhstan has legalized cryptocurrency since 2020. The International Financial Center has created opportunities for exchanges to operate. For the first time in the world, the issue of taxation of cryptocurrency mining was considered.

"In our industry, along with achievements, there are many risks. Firstly, due to the fact that our energy system is in a deplorable state, most mining companies and data centers stop working. This is a huge problem for an industry that is just beginning to develop. If there is no surplus in the energy sector in the country, the industry will not be able to develop," the expert says.

On the other hand, at the suggestion of the associations, the mining tax was approved in the amount of 1 tenge per kilowatt. There was a plan according to which the country's budget would receive billions. However, due to the current state of electricity, the budget does not receive additional funding. After all, the work of many mining companies has been suspended.

"Nevertheless, the government has adopted another law, unilaterally. The consent to which was not given by market participants. According to him, the tax per kilowatt was not 1 tenge, but 10 tenge from January 2023. This creates fundamental difficulties for the industry," Sapar Kairatovich says.

Now some mining companies produce electricity through natural gas. However, the increase in gas prices significantly increases the cost of production.

According to Sapar Kairatovich, in order to ensure the development of the domestic crypto industry, it is necessary to create opportunities now.

"If there is a deliberate slowdown in the development of the industry, then business citizens, IT specialists from this field will leave our country. We will lose our achievements. Therefore, we need a balance for each of the parties.

If we want to fulfill the President's instructions, be at the forefront of development, set an example to other countries, then we must study this area deeply ourselves and create the right conditions," the head of the Association said.

Original article: https://halyq-uni.kz/kozkaras/13314-ukimet-durys-zhagdai-zhasauy-kerek-sarapshy-tokaevtyn-tsifrlandyru-men-kriptoindustriia-turaly-oiyn-aiaksyz-kaldyrmauga-shakyrdy/