Kazakhstan Seeks Crypto Leadership with 75% Mining Output on AIFC Exchanges by 2025

Kazakhstan is actively pursuing an energy overhaul by embracing digital mining, aiming to enhance both its energy infrastructure and cryptocurrency market. The country is exploring digital mining as a means to boost its energy and crypto sectors, with officials advocating for more lenient regulations to attract global investors and foster economic growth.

Kanysh Tuleushin, the first vice minister of digital development, innovation, and aerospace industry, highlighted that Kazakhstan could lead Central Asia in the crypto market if it relaxes its regulations. He emphasized that legalizing crypto trading beyond the Astana International Financial Centre (AIFC) could draw significant investment and revenue, potentially bringing billions of tenge into the national budget. This influx of funds could be used to improve sectors such as education and healthcare.

Digital mining is also seen as a key component in upgrading Kazakhstan’s energy network. By developing digital mining farms, the country could modernize its power stations using petroleum gas, thereby reducing carbon emissions. Tuleushin noted that the U.S. utilizes crypto mining to absorb excess power during peak production hours. Under the ‘70/30 project’, foreign investors support the modernization of Kazakhstan’s thermal power stations, with 70% of the generated capacity going to the national electric system and 30% to digital mining farms.

Kazakhstan has made notable strides in digital mining, registering over 400,000 mining devices and issuing more than 80 licenses for mining activities. This has contributed $34.6 million to the country’s tax revenue over the past three years. The volume of crypto trading through AIFC exchanges has surged, from $324.2 million in 2023 to $1.4 billion in 2024. The government anticipates that by 2025, 75% of crypto miners' output will be sold on AIFC exchanges, enhancing market regulation.

Despite these advancements, Kazakhstan’s approach to digital asset trading remains conservative. Currently, digital assets are categorized into two main groups, excluding Bitcoin and Ethereum. Only the AIFC permits the trading of non-covered assets, with most transactions occurring with minimal government oversight. Tuleushin believes that easing some regulations could attract strong global investors and stimulate economic growth.

Additionally, the government is exploring the establishment of a crypto bank to manage digital assets and oversee legal cryptocurrency transactions. This proposal, introduced by Azat Peruashev in the Mazhilis, has garnered support from many government representatives. The president of Kazakhstan, Tokayev, has ordered improvements to the country’s cryptocurrency laws to better regulate the sector.

In summary, Kazakhstan’s push for digital mining and more lenient crypto regulations aims to position the country as a regional leader in blockchain technology. By modernizing its energy infrastructure and attracting global investment, Kazakhstan seeks to enhance its economic prospects and become a significant player in the global crypto market.