Kazakhstan is developing a plan to let crypto mining companies generate their own electricity from associated petroleum gas produced at oil fields. The initiative is intended to reduce gas flaring, lower miners’ electricity costs and limit their reliance on the national grid. The Energy Ministry says about 40 to 60 oil fields currently flare associated gas. In 2024, Kazakhstan burned an estimated 300 million to 340 million cubic meters of associated petroleum gas, which could generate about 1.2 terawatt-hours to 1.3 terawatt-hours of electricity if converted into power. The Ministry of Artificial Intelligence and Digital Development is preparing a legal framework for the model. The initiative follows Kazakhstan’s earlier mining boom after China’s 2021 crackdown, when mining briefly made the country the world’s second-largest Bitcoin hub and consumed about 8% of national electricity supplies, contributing to shortages and restrictions on miners. President Kassym-Jomart Tokayev’s July 8 decree authorized the broader use of oil-field gas for off-grid mining power, while also providing personal income tax exemptions for gains on licensed domestic digital-asset platforms. Kazakhstan is separately developing stablecoin and tokenized-instrument frameworks for cross-border trade.