Kazakhstan unveiled a new strategic digital mining framework that ties miners’ access to cheap electricity to their contributions to a state-backed digital asset reserve via the Astana Hub, a government tech cluster.

Applications must go through the E-Licensing system and committee review; once approved, miners sign an agreement with the Astana Hub Fund within five working days and complete a power purchase agreement before beginning operations.

A National Cryptocurrency Analysis Center is planned by mid-2027 to monitor transactions, flag illicit activity, and review DeFi platforms.

To provide context, Brenda, a cryptocurrency and tech writer, has reported on developments in this space.

Several key details remain unclear, including the exact transfer percentage, mechanics of transfer (sweeps, custody, or reporting), governance independence of the investment entity, and concentration risk from reliance on a small number of operators.

Industry observers are watching how the new rules will affect mining activity, investment flows, costs, and broader environmental and energy-policy implications.

Under the framework, miners will receive electricity quotas through 10-year contracts with listed power producers and must transfer a portion of mined assets—starting with a figure cited around 10% after electricity and grid costs—to the Astana Hub fund, which will oversee assets within the National Investment Corporation of the National Bank.

Market activity had been subdued, but the framework is expected to spur future investment and growth in Kazakhstan’s mining sector.

The move aims to attract more mining companies and strengthen Kazakhstan’s position in the global crypto mining landscape, potentially expanding its state crypto reserve program.

The decree offers tax incentives to pull activity onshore, including personal income tax exemptions on crypto gains for Kazakh providers through 2028 and a window for holders to move coins into regulated infrastructure.

Each participant must maintain a separate NSCR wallet and submit an annual audit by April 1; if audits show under-contribution, the miner must remit the shortfall within 30 days.

Beyond mining, the decree establishes a Committee on Digital Assets and Payment Systems under the National Bank and advances tokenization platforms, exchange and custody services, stablecoins for cross-border trade, and crypto-fiat channels.