Kazakhstan is seeing crypto not just as a financial tool but as a way to upgrade its ageing energy infrastructure. According to government officials, digital mining farms could support the modernisation of the country’s power grid. By taking cues from how the U.S. uses miners to balance energy loads, Kazakh leaders are looking at similar possibilities.
Kanysh Tuleushin, First Vice Minister of Digital Development, Innovation, and Aerospace Industry, says one path involves foreign investors helping modernise thermal power plants. Under the “70/30” model, 70% of the added power goes into the national grid, while 30% is used by mining farms. It’s a split that the government believes helps both the energy sector and the fast-growing crypto economy.
On top of that, in late April this year, Prime Minister Olzhas Bektenov said that the country is also considering opening crypto banks. These would handle digital asset transactions more securely and give users a legal, centralised alternative to the underground crypto scene. Some banks could even partner with platforms offering top crypto wallet solutions to help users store and manage assets safely. The idea is still under review, but officials say it could help Kazakhstan better control digital money flow, support compliance, and increase state revenue.
Tuleushin believes associated petroleum gas, usually burned off during oil extraction, could power data centres near major oil fields. That would not only give purpose to wasted gas but also reduce emissions and help oil producers bring in more income.
The government is pushing for tighter oversight of crypto markets, especially after discovering that 91.5% of digital asset transactions in 2023 happened outside official channels. That year, trade volume at the Astana International Financial Centre (AIFC) jumped from $324 million to $1.4 billion. By January 2025, crypto miners will be required to sell at least 75% of their holdings through AIFC exchanges.
There’s also an effort to clean up illegal activity. Authorities shut down 36 unauthorised crypto exchanges, froze nearly $5 million in assets, and took down two Ponzi-style scams that used cryptocurrency to draw investors. Over 3,500 websites offering illegal crypto services were blocked.
Since last year, Kazakhstan has tracked over 415,000 pieces of mining equipment. Of the 84 licenses issued, 64 are still active, with five mining pools recognised, three of which continue to operate. These operations brought in $34.6 million in tax revenue over the last three years.
However, oversight still has gaps. Alikhan Smailov, who leads the Supreme Audit Chamber, says many miners buy power from independent sellers rather than through Kazakhstan’s centralised system. In 2024 alone, miners used 901 million kilowatt-hours of electricity, costing about $25.5 million. Some of that power came from Russia.
Officials classify digital assets into two types: covered (backed by real-world value, like real estate) and non-covered (like Bitcoin or Ethereum). Right now, trading is allowed only within the AIFC zone. Tuleushin says this limited system keeps things stable, but it also blocks major players from entering the market.
If trading were legalised nationwide, Kazakhstan could become a regional leader in crypto. A 10% tax on activity in the so-called grey market could bring in around 190 billion tenge, or $372 million a year. That kind of money could help build schools, hospitals, and other basic infrastructure across the country.
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