Kazakhstan has collected nearly $35 million in taxes from cryptocurrency mining companies over the past three years, according to a senior government official. This revenue highlights the country's growing role as a regional hub for digital asset operations while addressing energy system challenges.
Rising Crypto Mining Revenues in Kazakhstan
Kanysh Tuleushin, Deputy Minister of Digital Development, Innovation, and Aerospace Industry, reported that cryptocurrency mining contributed 177 billion tenge ($34.6 million) to Kazakhstan's budget since 2020. Key developments include:
- 84 mining licenses issued since 2023
- 5 approved mining pools registered
- 415,000 mining devices legally operational
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The government mandates that by 2025, miners must sell 75% of mined assets through AIFC-regulated exchanges—a move expected to boost trading volumes from $324 million (2023) to $1.4 billion (2024).
Energy System Synergies with Mining Operations
Tuleushin emphasized mining's potential to modernize Kazakhstan's energy infrastructure:
"Miners can help balance power grids by consuming excess energy during low-demand periods, as seen in the U.S."
Current policies allow:
- Foreign investors modernizing power plants to allocate 30% of generated electricity to mining
- Oil-field adjacent data centers utilizing associated petroleum gas (APG) for energy needs
This approach reduces carbon emissions while creating revenue streams for oil producers.
Regulatory Evolution and Economic Potential
Despite energy shortages (miners consumed 901 million kWh in 2022), Kazakhstan positions itself as Central Asia's crypto leader by:
- Categorizing assets as collateralized vs. non-collateralized (e.g., Bitcoin)
- Concentrating exchange activities within the Astana International Financial Centre (AIFC)
- Proposing 10% taxation that could yield 190 billion tenge ($373 million) annually
Tuleushin advocates flexible regulations:
"Adaptive rules attract major players, as demonstrated by the UAE's success."
FAQ: Kazakhstan's Crypto Mining Landscape
Q: How does Kazakhstan regulate cryptocurrency mining?
A: Through licensed operations, mandatory exchange sales, and AIFC oversight—with strict energy procurement rules.
Q: What energy sources do miners use?
A: Grid electricity (including Russian imports), APG from oil fields, and 30% allocations from modernized power plants.
Q: Could mining taxes fund public services?
A: Yes—10% levies might finance dozens of schools/hospitals yearly through $373 million in potential revenue.