Kazakhstan is poised to emerge as a prominent crypto hub in Central Asia, provided that regulatory restrictions are relaxed, according to Kanysh Tuleushin, the first vice minister of digital development, innovation, and aerospace industry in the country. In an op-ed published in the Kazakhstanskaya Pravda newspaper, Tuleushin highlighted the potential for Kazakhstan to lead in blockchain innovation through digital mining and strategic policy changes.

Tuleushin emphasized the significance of lifting restrictions on digital asset trading across Kazakhstan, suggesting that this move could propel the country to become a regional crypto hub. He estimated that broader legalization and taxation in the crypto sector could inject hundreds of billions of tenge into the national budget. To achieve this vision, Tuleushin called for the implementation of nationwide crypto regulations, transparent exchanges, and the legalization of crypto ATMs.

One key aspect that Tuleushin highlighted was the role of crypto mining firms in modernizing Kazakhstan's energy infrastructure. Drawing parallels with the United States, he proposed that miners in Kazakhstan could help stabilize the power grid by consuming surplus energy. Tuleushin introduced the 70/30 energy initiative, where foreign investors would finance thermal power upgrades, with 70% of the generated capacity allocated to the national grid and 30% to miners. He also suggested utilizing associated petroleum gas from oil fields to power data centers, which would reduce emissions and generate revenue for oil producers.

The crypto mining sector in Kazakhstan has already made significant contributions, with $34.6 million in taxes paid over the past three years. As of 2023, the government had registered 415,000 mining machines, issued 84 licenses, and accredited five mining pools. Crypto trading on the Astana International Financial Centre (AIFC) exchange saw a substantial increase from $324 million in 2023 to $1.4 billion in 2024. Starting from 2025, miners will be mandated to sell 75% of their mined assets through AIFC platforms.

Despite these advancements, unregulated crypto transactions continue to be a challenge in Kazakhstan, with an estimated $4.1 billion in turnover in 2023 occurring outside government oversight. In response, authorities shut down 36 illegal exchanges in 2024, seizing $4.8 million in assets and dismantling two Ponzi schemes. Additionally, the country is in the process of developing its own central bank digital currency (CBDC), the digital tenge, with

Source: https://cointelegraph.com/news/kazakhstan-eyes-central-asia-crypto-hub-status-with-reforms?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound