Kazakhstan approves mining rules to build national crypto reserve

Kazakhstan has approved new rules requiring strategic crypto miners to contribute part of their mined digital assets to a national cryptocurrency reserve in exchange for access to regulated electricity quotas.

Kazakhstan approved Government Resolution No. 638 on July 18, introducing a strategic digital mining program that will take effect on Aug. 1, according to local news outlet Zakon. 

Under the framework, approved miners will be allowed to purchase electricity from participating producers at prices capped by regulated maximum tariffs.

In return, miners must transfer part of the digital assets they produce to the Astana Hub autonomous cluster fund. The assets will then be placed under the management of the National Investment Corporation of the National Bank of Kazakhstan for investment through the country’s National Strategic Cryptocurrency Reserve.

Participating miners will be required to transfer 10% of the digital assets remaining after electricity and delivery costs, with value added tax deducted from the total output. The contribution must be made by the 25th day of the following month.

The program is limited to large operators. Applicants must own a digital mining data center with at least 150 megawatts of capacity and use mining equipment capable of producing at least 150 terahashes per second per unit.

Mining facilities must also connect through transformer substations operating at 35 kilovolts or higher, with at least one megawatt of approved capacity. Applicants need two internet service agreements, an onsite equipment repair center, qualified technical personnel, and no outstanding tax obligations or restrictions on company property.

The authorized agency will have three working days to verify each application before sending it to a dedicated commission. The commission will then have five working days to assess whether the miner meets the requirements and whether sufficient electricity remains within the approved quota.

Approved companies must sign agreements with Astana Hub and an authorized electricity producer within five working days. Electricity purchase agreements under the program can last up to 10 years.

The initial program includes a 300 megawatt electricity quota supplied by Ekibastuz GRES 1, one of Kazakhstan’s largest power plants.

Participants must open a separate digital asset wallet for strategic mining operations and submit an independent audit each year by April 1. Any shortfall identified by the audit must be transferred to Astana Hub within 30 calendar days.

Companies will still be allowed to conduct conventional mining alongside strategic mining, provided they maintain separate records for electricity consumption and mined assets.

The framework connects Kazakhstan’s energy allocation system directly to its plan for building a state controlled cryptocurrency reserve, while limiting participation to operators with substantial infrastructure and computing capacity.

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