Kazakhstan — From Boom to Strategy: Mining, Digital Tenge, and 10% to State Reserve | SforNews

27 Aug, 2026
| Salome K

KAZAKHSTAN — FROM BOOM TO STRATEGY: MINING, DIGITAL TENGE, AND THE NATIONAL CRYPTO RESERVE

Diagnosis of the Old Model and Its Place in the New Energy-Digital System

INTRODUCTION: A BRIEF DIAGNOSIS

Kazakhstan is the most dynamic point on the map of the new energy-digital system among post-Soviet countries. It is a country that is simultaneously:

• An energy player — a major producer of coal and electricity, with a developed network of GRES (state regional power plants) and hydroelectric stations [1].

• A former global mining hub — after China’s mining ban (2021), Kazakhstan became the world’s second-largest bitcoin mining center after the U.S., but grid overload and tight regulation pushed many miners out [4].

• A pioneer of national crypto regulation — Kazakhstan has created one of the world’s most advanced regimes for mining and digital assets, including a mandatory National Crypto Reserve (10% of production) and the digital tenge (CBDC) [2][4].

• A partner of China in mBridge — Kazakhstan is integrating the digital tenge with the digital yuan through the international mBridge platform and bilateral channels, creating an alternative to SWIFT [8][9].

Kazakhstan’s paradox: A country that five years ago was the Wild West of crypto mining — with overloaded grids, underground farms in garages, and nearly zero taxes — is today building one of the most sophisticated state crypto infrastructures in the world [4]. But this transition is painful: legal miners are losing competitiveness to “gray” operators, and the digital asset market remains fragmented between the national regime and the AIFC (Astana International Financial Centre) regime [6].

Kazakhstan is not just “legalizing” cryptocurrencies. It is embedding them into state strategy — through taxes, reserves, and international settlements.

SECTION 1. THE OLD MODEL: WHAT EXISTED, WHAT BROKE

Kazakhstan’s model of recent years was built on three pillars:

1. Coal and electricity — the foundation of export revenues and domestic consumption [4].

2. Transit and raw materials — access to markets in China, Russia, and Europe [1].

3. Attracting foreign capital — through free economic zones (AIFC) and investment incentives [6].

This model works, but it is faltering.

The crypto boom of 2021–2022. After China’s mining ban, Kazakhstan became the world’s second-largest bitcoin mining center [4]. Thousands of farms flooded into the country, attracted by cheap electricity — around $0.03–0.05 per kWh [1]. However, the Soviet-era grid could not handle the load. In October 2021, overload caused blackouts at three power plants in the northeast [4]. At its peak, mining consumed about 8% of Kazakhstan’s total electricity [4].

Government response. Authorities introduced strict rules: licensing, equipment registration, higher tariffs [1]. As a result, many miners went underground or left the country. By 2026, the legal sector had shrunk, while the gray sector had grown [4].

The map (rapid growth, cheap energy, capital inflow) ceased to reflect the territory (overloaded grids, miner exodus, lost tax revenue) [4].

SECTION 2. ENERGY PROFILE: WHAT EXISTS, WHAT IS MISSING

Kazakhstan is a major energy producer, but its infrastructure requires modernization [4].

What exists	What is missing
Large GRES and hydroelectric stations (Ekibastuz GRES-1 — 300 MW allocated for strategic mining) [2]	A flexible grid for peak loads (overloads during peak hours) [4]
Developed coal-fired generation [1]	Modern grid infrastructure (Soviet-era equipment wear) [4]
Excess capacity in some regions [1]	A unified energy strategy (transition to renewables is slow) [1]
Access to associated petroleum gas (use for mining permitted) [3]

Key fact: Kazakhstan has enough energy for mining but cannot monetize it effectively through traditional channels due to grid wear and lack of domestic demand [4]. Therefore, mining becomes a tool for utilizing excess energy — especially in regions without export capacity [1].

New element: In July 2026, President Tokayev signed a decree allowing miners to use associated petroleum gas for electricity generation in isolated mode [3]. This reduces load on the national grid and monetizes a resource that was previously flared.

Conclusion: Kazakhstan has the energy resources for mining, but its main asset is not energy itself, but state infrastructure that converts energy into digital assets and reserves [2].

SECTION 3. POSITION ON MINING AND CRYPTOCURRENCIES

Here lies Kazakhstan’s main strategic move.

3.1. Legalization and Regulation

In November 2025, Kazakhstan adopted comprehensive amendments to the Law “On Digital Assets” (No. 231-VIII) [1]:

• Licensing — organizing digital asset turnover without a license is prohibited. Licenses are issued either through AIFC or under national rules [1][6].

• Equipment registration — all mining devices must be registered in the state registry. As of 2026, over 460,000 devices are registered [7].

• Accredited pools — miners must work through local pools that record asset distribution and transmit data to the state. The current registry lists 7 accredited pools [7].

• Taxation — CIT (corporate income tax) is calculated at the moment cryptocurrency is credited, even if the miner hasn’t sold anything [1].

3.2. Strategic Digital Mining — 10% to Reserve

On July 18, 2026, the government approved the rules for strategic digital mining (Decree No. 638) [2]:

Conditions for miners:

• Data center capacity of no less than 150 MW [2]

• Equipment with hashrate of no less than 150 TH/s per unit [2]

• Connection to grids from substations of 35 kV and above [2]

• No debts or encumbrances [2]

In return, miners receive:

• Access to electricity at marginal tariffs (below market rates) [2]

• A 10-year contract [2]

Obligations:

• Monthly transfer of 10% of mined digital assets (after deducting electricity costs) to the National Strategic Crypto Reserve [2]

• Transfer is conducted through “Astana Hub” → trust management by the National Investment Corporation of the National Bank [2]

Energy supply: Currently, the only supplier is Ekibastuz GRES-1 with a quota of 300 MW [2].

3.3. Tax Amnesty and Incentives

In August 2026, Kazakhstan announced a three-year tax amnesty for private investors [5]:

• Exemption from tax on income from digital asset operations (2026–2028) provided assets are transferred to Kazakhstani platforms [5].

• Cancellation of tax audits for the previous three years for those who legalize [5].

• Goal: to return billions of dollars in crypto assets currently held on foreign exchanges and in “gray” wallets back to the country [5].

Result: According to AIFC data, Kazakhstani citizens hold about 1 million crypto wallets — nearly 4 times more than are registered on local exchanges (256,900) [6]. The amnesty isdesigned to legalize this volume [5].

3.4. Restrictions

• Ban on using cryptocurrencies for domestic payments — digital assets are not legal tender [1].

• Separate accounting for strategic and ordinary mining — a separate wallet for reserve contributions is mandatory [2].

SECTION 4. POSITION OF THE NATIONAL BANK OF KAZAKHSTAN (NBK)

The National Bank of Kazakhstan is one of the most progressive central banks in the region. It does not just “observe” crypto — it builds infrastructure.

4.1. Digital Tenge (CBDC)

In January 2026, the National Bank officially launched the digital tenge as legal tender, with the NBK as its issuer [4].

Key parameters (as of August 2026):

• Issuance: 340 billion digital tenge (approximately $626 million) [4].

• Pilot projects: 20 completed, 10 in progress, 50 in preparation [4].

• Mandatory use: starting August 2026, the digital tenge is mandatory for government procurement in 8 expense categories for projects exceeding 100 million tenge ($184,000) [4].

Functionality:

• Programmability: funds are “tagged” for a specific purpose (e.g., tenge for a road cannot be redirected elsewhere) [4].

• Traceability: end-to-end control from budget to final contractor [4].

• Smart contracts: payment is released only after a confirming event (work completion certificate, electronic waybill) [4].

4.2. Integration with China (mBridge)

Kazakhstan is actively integrating the digital tenge with the digital yuan through two parallel systems [8][9]:

1. mBridge — an international platform involving China, Hong Kong, Thailand, the UAE, and Saudi Arabia. Total transaction volume through mBridge has exceeded $69 billion, with 95% in e-CNY [8].

2. Bilateral integration through the CBETS (China) system [9].

Expected launch of pilot projects — by the end of 2026 [9]. This makes the digital tenge an instrument for international settlements, alternative to SWIFT.

4.3. Risks and Limitations

The IMF, in its 2026 report, highlighted key risks for the digital tenge [5]:

• Integration with crypto assets — could open channels for systemic risks [5].

• Legal framework — requires clarification of the digital tenge’s status in civil, payment, and currency legislation [5].

• Financial stability — expanded use could pose risks to the banking system [5].

SECTION 5. ARCHITECTURAL CONCLUSION: WHAT PATH IS AVAILABLE TO KAZAKHSTAN

Kazakhstan is the only country that simultaneously:

1. Is an energy producer (coal, GRES, hydro) [1][4].

2. Is creating a National Strategic Crypto Reserve (mandatory transfer of 10% of production) [2].

3. Has launched a digital tenge (CBDC) with mandatory use in government procurement [4].

4. Is integrating the digital tenge with e-CNY through mBridge [8][9].

5. Is conducting a tax amnesty to return capital [5].

6. Permits the use of associated gas for mining [3].

Unlike Russia, Kazakhstan has a strategy. There is no gap between map and territory — it builds territory in accordance with the map [4]. Its regulation is consistently tightening, but at the same time creates incentives for legalization [1].

Unlike Europe, Kazakhstan is not closing coal and not abandoning energy. It uses it for mining and reserves [4].

Unlike China, Kazakhstan does not ban mining but regulates and embeds it into state strategy [1][2].

Kazakhstan’s Weaknesses

1. Competition with “gray” mining. Legal miners pay taxes and 10% reserve; their margin is 5–10% at BTC ~$72,800. Gray miners pay nothing; their costs are 2 times lower [4]. The legal sector loses to the shadow economy.

2. Grid overload. The old Soviet infrastructure cannot handle peak loads. Strategic mining at 300 MW from GRES-1 is just the first step [2][4].

3. Dual regulation. AIFC and national rules create parallel infrastructures, increasing business costs [1][6].

4. Legal risks. The definition of “digital assets” remains unclear, creating room for abuse [1].

Main Conclusion

Kazakhstan will not “import” bitcoin like Europe. It has its own energy, its own miners, and its own strategy. It will:

• Mine bitcoin — through state infrastructure and strategic reserves [2].

• Accumulate reserves — through mandatory transfer of 10% of production [2].

• Use the digital tenge — for international settlements through mBridge [8][9].

Bitcoin for Kazakhstan is not an “energy coupon” (as for Russia) nor a “tactical tool” (as for China). It is an instrument of state sovereignty — a way to monetize energy, build reserves, and integrate into the new global payment system [2][4].

CONCLUSION: HOW KAZAKHSTAN FITS INTO THE GLOBAL TRANSITION

Kazakhstan is not the architect of the new system nor its victim. Kazakhstan is a pragmatic builder that uses all available tools:

• Energy — for mining [1][3].

• Bitcoin — for reserves [2].

• Digital tenge — for settlements [4].

• mBridge — for international payments [8][9].

Europe will become an eternal bitcoin importer — because it has no energy.

China is building parallel infrastructure — because it has a strategy.

Russia could become an energy sovereign — but it has no strategy.

Kazakhstan is building its own system — not aggressively, not ideologically, but pragmatically, learning from the mistakes and successes of others [4]. Its path is one of gradual but systemic transformation.

Global meaning: Kazakhstan shows that even a country with limited resources can become a player in the new system — if it has a strategy [4][5]. The question is not whether Kazakhstan will use bitcoin and digital currencies. The question is whether it can complete the transition from “boom” to a sustainable system faster than its old energy infrastructure collapses under the load.

LIST OF SOURCES

1. Law of the Republic of Kazakhstan “On Digital Assets” No. 231-VIII (November 2025)

2. Government Decree No. 638 “On Approval of Rules for Strategic Digital Mining” (July 18, 2026)

3. Presidential Decree on Permitting the Use of Associated Petroleum Gas for Mining (July 2026)

4. National Bank of the Republic of Kazakhstan — Report on Digital Tenge Launch (January 2026) / Report on Energy Infrastructure Status (2026)

5. IMF Country Report — Kazakhstan: 2026 Article IV Consultation

6. AIFC (Astana International Financial Centre) — Crypto Wallet Data, 2026 / AIFC Regulatory Regime

7. Register of Accredited Crypto Platforms and Pools of the Republic of Kazakhstan (2026)

8. Atlantic Council / SCMP — mBridge Transaction Volume Data (2026)

9. Analytical Report on mBridge and Digital Tenge Integration (2026)

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