Kazakhstan is positioning itself to become Central Asia’s leading blockchain hub through an innovative approach that harnesses crypto mining to modernize its national energy infrastructure.
In an op-ed for the Kazakhstanskaya Pravda newspaper as covered by Kursiv Media, Kanysh Tuleushin, First Vice Minister of Digital Development, Innovation and Aerospace Industry, has unveiled an ambitious strategy that could revolutionize both the country’s energy sector and its position in the global digital economy.
Revolutionary Energy Model
The cornerstone of Kazakhstan’s plan is a pioneering “70/30” energy model that would attract foreign investment to upgrade thermal power stations. Under this arrangement, 70% of newly generated capacity would supply the national grid, while 30% would power crypto mining operations.
This approach mirrors successful systems in the United States, where mining farms help balance energy grids by consuming excess electricity during low-demand periods.
“If all restrictions were lifted and digital asset trading was allowed across Kazakhstan, the impact could be significant,” Tuleushin wrote in the opinion piece. “Kazakhstan might become Central Asia’s crypto hub.”
The strategy extends beyond conventional power stations. Officials are exploring ways to capture associated petroleum gas—typically flared as waste during oil production—to fuel mining operations. This environmentally conscious approach would simultaneously reduce emissions and create new revenue streams for the country’s oil producers.
Kazakhstan’s crypto mining sector has already demonstrated its economic potential, contributing $34.6 million in tax revenue over the past three years. The government has formalized the industry by registering over 415,000 mining devices, issuing 84 licenses, and accrediting five mining pools since 2023.
Nationwide Crypto Trading Revenues
While mining reforms address energy infrastructure, Kazakhstan is simultaneously looking to expand its cryptocurrency trading regulations beyond the Astana International Financial Centre (AIFC), where activity has grown dramatically from $324 million in 2023 to $1.4 billion in 2024.
Despite this growth, an estimated 91.5% of Kazakhstan’s crypto transactions—worth approximately $4.1 billion in 2023—occur outside regulatory oversight. This “gray zone” represents both a challenge and an opportunity for authorities.
“Legalizing the gray zone would bring billions of tenge into the budget,” Tuleushin noted. “For example, just a 10% tax could generate more than 190 billion tenge per year ($372.9 million), enough to construct dozens of new schools and hospitals from scratch.”
Kazakhstan’s crypto ambitions parallel similar reforms emerging across the globe as nations compete to attract blockchain investment and talent.
The United Arab Emirates has emerged as a standout example, with Dubai establishing a comprehensive Virtual Assets Regulatory Authority that has drawn major exchanges like Binance and Kraken to the region. Closer to home, Uzbekistan has created special economic zones with preferential electricity rates for miners, while El Salvador’s Bitcoin adoption as legal tender represents the most dramatic national crypto experiment to date.
The Digital Development Ministry is developing proposals for transparent nationwide crypto exchanges and ATMs, though implementation will require coordination with the National Bank and Financial Market Regulation Agency.
As neighboring countries like Uzbekistan and Kyrgyzstan also embrace crypto-friendly policies, Kazakhstan’s comprehensive approach could establish it as the dominant blockchain force in Central Asia, transforming the region’s digital landscape while addressing critical infrastructure needs.
