The law “On Digital Assets in the Republic of Kazakhstan,” signed by President Kassym-Jomart Tokayev on Monday, has come into force. The main purpose of the new legislation, approved together with amendments to other legal acts like the Tax Code, is to regulate activities related to the issuance and circulation of these assets, most notably mining.

The changes are also aimed at creating conditions for the development of the crypto industry and fair competition between market participants, local media reported. The digital asset law, which was adopted by the parliament in late January, defines the powers of state bodies that oversee the sector and introduces licensing for crypto miners and exchanges, replacing the current registration system.

Mining licenses will be issued for a period of three years to two groups of applicants. Entities that own mining infrastructure, such as data centers meeting certain standards in terms of equipment, location, and security, fall under the first category. The second is for those that own mining hardware but rent space in crypto farms and do not apply for an energy quota directly.