Kazakhstan approves strategic crypto mining framework tied to state-backed reserve

Kazakhstan has enacted rules for strategic digital mining that offer qualifying large-scale operators long-term electricity quotas at capped tariffs if they transfer part of their mined digital assets each month into a state-managed reserve structure. The framework, enacted on July 22, is limited to miners that own data centers with at least 150 megawatts of capacity, while total program electricity allocation is capped at 300 megawatts, narrowing participation to a small number of major operators. After approval by a dedicated commission, miners must finalize agreements with the Astana Hub autonomous cluster fund within five working days and transfer a portion of mined assets to Astana Hub by the 25th of the following month. Those assets are then placed under the trust management of the National Investment Corporation, described as a subsidiary of the National Bank of Kazakhstan, and into the National Strategic Crypto Reserve. The rules do not name specific tokens, but the mechanism is expected to apply mainly to Bitcoin because industrial proof-of-work mining overwhelmingly produces it. The move builds on Kazakhstan’s broader digital-asset push, including President Kassym-Jomart Tokayev’s proposal for a strategic crypto reserve, reported plans to allocate $350 million from gold and foreign exchange reserves toward digital assets, the September 2025 launch of the state-backed Alem Crypto Fund, the rollout of Crypto Pay by Alatau City Bank and Binance Kazakhstan, and earlier enforcement against unlicensed exchanges. Kazakhstan became a major mining hub after China’s 2021 crackdown and at one stage accounted for more than 18% to 27% of global Bitcoin hashrate, though policy and energy risks remain central for miners committing to 10-year power arrangements.