Kazakhstan is stepping into a new era of digital finance and energy reform with a strategic proposal that connects crypto mining to national infrastructure upgrades. In a detailed op-ed for Kazakhstanskaya Pravda, First Vice Minister of Digital Development, Innovation and Aerospace Industry, Kanysh Tuleushin unveiled the government’s ambitious “70/30” model a plan that could reshape Kazakhstan’s energy sector while placing it on the global map as a serious player in crypto innovation.
The “70/30” Mining Model: Powering Progress
At the core of the proposal lies a public-private partnership model where foreign investors fund upgrades to Kazakhstan’s aging thermal power stations. In return, 70% of the newly generated electricity would flow into the national grid to meet rising energy demand, while the remaining 30% would be allocated to crypto mining operations. The idea isn’t just to support the mining industry it’s to use mining as a mechanism for improving the country’s broader energy infrastructure.
Tuleushin emphasized that this approach is not without precedent. In the U.S., crypto miners often serve as flexible energy consumers, balancing grids by absorbing excess power during periods of low demand. Kazakhstan now aims to replicate this utility-friendly dynamic, turning mining farms into energy stabilizers rather than burdens.
Additionally, the government is exploring the use of associated petroleum gas (APG) a byproduct of oil extraction that’s often flared or wasted as a renewable power source for mining. This strategy could help reduce environmental waste while monetizing unused resources, creating new income streams for oil producers.
Crypto Mining: A Growing Economic Contributor
Kazakhstan has already positioned itself as a regional crypto mining leader. Since 2023, over 415,000 mining rigs have been registered, 84 licenses issued, and five mining pools accredited. The sector has contributed $34.6 million in tax revenue over the past three years, and the momentum continues to build.
With the proposed energy upgrades and policy reforms, the country is laying the groundwork to solidify its dominance in mining, improve grid reliability, and stimulate sustainable economic growth through digital assets.
Beyond the AIFC: Toward Nationwide Crypto Trading
Tuleushin’s vision doesn’t stop at mining. He’s also advocating for a nationwide expansion of crypto trading beyond the confines of the Astana International Financial Centre (AIFC) a special zone with its own independent legal framework.
Currently, trading is only permitted within the AIFC, where the volume skyrocketed from $324.2 million in 2023 to $1.4 billion in 2024. But outside the AIFC, an estimated $4.1 billion in crypto transactions took place last year over 90% of it unregulated.
Legalizing and regulating this “gray zone” could transform Kazakhstan into Central Asia’s crypto hub, rivaling neighboring crypto-forward countries like Uzbekistan and Kyrgyzstan. Tuleushin estimates that a modest 10% tax on digital asset transactions could bring in 190 billion tenge annually (about $372.9 million) funds that could be used for essential public services like schools and hospitals.
The Future of Digital Finance in Kazakhstan
To support this broader crypto adoption, the Ministry of Digital Development is drafting proposals for transparent crypto exchanges, widespread digital asset ATMs, and a legal framework to bring the shadow economy into compliance. However, successful implementation will require coordination with the National Bank and the Financial Market Regulation Agency.
Kazakhstan is also expanding its Central Bank Digital Currency (CBDC) pilot, known as the digital tenge. Already, 250 billion digital tenge has been issued, featuring unique digital tags to ensure traceability in public expenditure a step toward financial transparency and accountability.
A Bold Blueprint for the Future
Kazakhstan’s strategy reflects a broader global trend: using crypto not just as an asset class, but as a tool for economic modernization and energy efficiency. If successful, the “70/30” model and nationwide crypto policy reform could elevate Kazakhstan to a leading position in the global digital economy.
The convergence of energy reform, crypto mining, and progressive regulation sets the stage for a transformative decade one where digital innovation isn’t just welcomed, but used to power the nation forward.
