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    Is there a difference between a «data center» and a mining farm?

    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan

    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan·
    Question

    Is there a difference between a «data center» and a mining farm?

    Answer

    The functional purpose of a traditional data center is to process and store data. The activity of mining farms is aimed at the extraction of unsecured digital assets (cryptocurrencies).

    The consolidation of the concepts of data center and mining farms is not currently reflected in the current legislation. Within the framework of the draft law «On digital assets in the Republic of Kazakhstan», it is planned to adopt the concept of mining farm.

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    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan·
    Question

    So far, if an individual has not submitted a notification to inform about digital mining activities, then this is not a violation?

    Answer

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    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan·
    Question

    Should I submit two reports on my activities to the authorized body if at the same time, in addition to digital mining, the company provides services to provide infrastructure for digital mining to third-party tenants? Is it required to inform the authorized body about the activities of digital mining as a data center according to the rules for informing about digital mining activities?

    Answer

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    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan·
    Question

    Do individuals have the right without registering an individual entrepreneur, on their land plot, which belongs to them by right of private ownership, or on a land plot to register a mining form for themselves as an individual, and what is necessary?

    Answer

    In order to ensure the legal functioning of the mining farm and timely payment of tax obligations, we recommend individuals to carry out mining activities as an individual entrepreneur.

    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan·
    Question

    Step-by-step instructions on legalization for further payment of taxes. The client is a legal entity, has the intention to purchase a mining farm. What actions should he start with?

    Answer

    Regarding the allocation of territory for mining activities, you need to contact the local akimat, and in order to obtain technical conditions for connection to the national electric grid, you need to send a request to KEGOC JSC or contact the authorized body in the field of ener...

    Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan·