New Framework for Strategic Mining

Kazakhstan’s government has formalized rules that integrate its substantial Bitcoin mining sector with national efforts to build a strategic cryptocurrency reserve. Under Government Resolution No. 638, approved on July 18 and set to take effect August 1, 2026, qualifying miners gain access to electricity quotas at capped tariffs through long-term contracts with approved power producers.

In return, participants must transfer a share of their mined digital assets—reported in local coverage as 10 percent after deducting electricity and grid costs—to the Astana Hub autonomous cluster fund. These assets then flow to the National Investment Corporation under the National Bank for management within the country’s national strategic crypto reserve.

The initiative stems from a presidential decree signed earlier in July by President Kassym-Jomart Tokayev, which outlines a broader push to regulate and harness the mining industry while expanding the country’s digital asset infrastructure.

Eligibility Criteria and Operational Requirements

Only operators meeting rigorous standards qualify for strategic status. Applicants must operate a data center with at least 150 megawatts of capacity and deploy mining equipment rated at a minimum of 150 terahashes per second per unit. Additional conditions include employing qualified technical personnel, maintaining on-site repair facilities, securing contracts with multiple internet service providers, and ensuring full compliance with tax and regulatory obligations.

The first designated power source is the Ekibastuz GRES-1 coal-fired plant, offering an initial 300-megawatt quota. Approved miners sign agreements with Astana Hub and power providers through the state’s e-licensing system.

Context Within Kazakhstan’s Crypto Strategy

Kazakhstan ranks among the world’s top Bitcoin mining jurisdictions, placing fifth globally according to the Cambridge Digital Mining Industry Report from April 2025. The country attracted significant mining activity following China’s 2021 crackdown, leveraging its abundant and relatively low-cost energy resources.

This latest move builds on prior steps, including the launch of the state-backed Alem Crypto Fund in 2025 and plans for the National Bank to allocate up to $350 million into crypto-related investments. Officials have referenced ambitions for a national crypto reserve on the scale of $1 billion, sourced partly through mining contributions and other mechanisms.

Beyond mining, the July decree directs development of tokenization platforms, regulated exchanges, custody services, and stablecoin use for cross-border trade. It also envisions tax incentives for crypto gains processed through domestic channels and the establishment of a National Cryptocurrency Analysis Center for oversight.

Complementary Digital Initiatives

Parallel to the mining rules, Kazakhstan is advancing its central bank digital currency. The digital tenge will be integrated into government procurement starting in August for purchases of goods and services, following successful pilots. Authorities have issued hundreds of billions in digital tenge and continue expanding its use across budget categories.

These developments position Kazakhstan as an active participant in the global shift toward regulated digital asset adoption, channeling private mining capacity into sovereign holdings without direct state operation of facilities.