President of Kazakhstan gives green light to cryptocurrency mining

The President of Kazakhstan, Kassym-Jomart Tokayev, held a meeting with the Minister of Energy of Kazakhstan, Magzum Mirzagaliyev, during which cryptocurrency mining and the development of electric power industry in Kazakhstan was discussed.

The President was briefed on measures taken to control digital mining conducted by entities that carry out their activities without registration. The minister said that the so-called “grey” miners are consuming up to 1200 MW of electricity, and work is ongoing to identify them.

Kassym-Jomart Tokayev instructed to ensure an immediate legislative regulation for digital mining, emphasizing that the so-called “white” miners will continue their activities without any additional restrictions.

Sapar Akhmetov, Chairman of the Kazakhstan Association of Blockchain Technologies, assessed the development of the cryptocurrency mining industry in Kazakhstan. He said: “The current situation regarding digital mining in Kazakhstan is stable. The President’s statement again emphasizes the well-coordinated work between the key market players and the Government. According to the amendments in the legislation, from January 1 mining companies will pay additional taxes. Work on further regulation of the market continues. An operational group has been created under the Ministry of Energy, with the participation of our Association and the National Chamber of Entrepreneurs ‘Atameken’. As part of our work, proposals are being considered to identify illegal digital mining entities.”

He also noted that the pilot project on the crypto exchange, with the participation of the Astanа International Financial Center and the National Bank of Kazakhstan, is at the final stage.

The Minister of Energy also presented to the Head of State a forecast for the electric power industry development until 2035. It is expected that the electricity consumption will grow annually in the next decade. It is therefore planned to increase the volume of electricity generation through renewable energy sources, as well as gas and hydroelectric power plants.