Kazakhstan is pushing for plans to modernize its energy systems through digital mining and expand crypto trading beyond the economic zone of the Astana International Financial Centre.
In OP-ED issued in Kazakhstanskayapuravda, Kanishin, the first vice minister of digital development, innovation and aerospace industries, outlined the government’s strategies to use digital mining to upgrade the country’s energy infrastructure and improve efficiency. Under the proposed “70/30” model, foreign investors will fund upgrades to thermal power stations, with 70% of the new energy production going to the national grid and 30% being allocated to mining operations.
Tuleushin noted that the model reflects US practices. This model helps crypto miners balance their grid by consuming excessive electricity during periods of low demand. He believes that Kazakhstan can adopt a similar approach to position mining farms as a tool to stabilize and support energy systems.
He also proposed to use the associated oil gas, a by-product of oil production, which is often burning and wasted, to generate electricity for mining farms. This reduces the environmental impact and creates new revenue streams for oil producers.
According to Tuleushin, Digital Mining has donated $34.6 million in tax revenue over the past three years. Since 2023, Kazakhstan has registered over 415,000 mining equipment, issued 84 licenses, and accredited five certified mining pools, and the sector continues to grow.
You might like it too: News Kazakhstan president calls for an urgent expansion of crypto infrastructure
In addition to its mining programme, Kazakhstan is considering expanding its crypto trading regulations nationwide, currently restricted to AIFC, a special economy with an independent legal framework.
Cryptocurrency trading volume on the AIFC Exchange increased from $324.2 million in 2023 to $1.4 billion in 2024. However, experts estimate that Kazakhstan’s total digital asset trading volume reached $4.1 billion in 2023, with 91.5% occurring outside the regulations.
“…If all restrictions are lifted and digital asset trading is permitted across Kazakhstan, the impact can be significant. The flexible rules will attract key players as we saw in the UAE. They will generate 190 billion tenges ($372.9 million) per year, enough to build dozens of new schools and hospitals from scratch,” the minister said.
To this end, Tuleushin proposed introducing flexible crypto trading rules other than AIFC. He said the Ministry of Digital Development is currently working on proposals to establish transparent crypto exchanges and ATMs. However, implementation requires coordination with national banks and financial market regulatory bodies.
Additionally, Kazakhstan is currently preparing to expand its use of digital tenges, designed to allow for full traceability of public spending. The CBDC Pilot Project has previously issued 250 billion digital tenges to track spending using unique digital tags.
You might like it too: Kazakhstan blocks illegal crypto exchanges to combat money laundering