Cryptocurrency Mining Takes Kazakhstan by Storm

Reading Time: 2 minutes
  • Kazakhstan is making plans to expand cryptocurrency mining in the country
  • The country expects $738 million in development funds over the next three years to assist in growing it
  • The Khazak government does not allow cryptocurrencies to be issued or circulated, but it does allow cryptocurrency mining

Kazakhstan is not the first country you would think of if asked to name a national Bitcoin mining hub, but the Asian country has been on a crypto mining boom for over two years. Now the government expects $738 million in development funds to pour into the country over the next three years to help with the expansion. Local news outlets report that the plan was discussed during a parliamentary session last week regarding further regulating the practice as the country seeks to cash in on a cryptocurrency mining boom that started in late 2017.

Kazakhstan Government Considers Mining an Entrepreneurial Activity

The report of the anticipated expansion comes from The Astana Times which states that Askar Zhumagaliyev, the Kazakh Minister of Digital Development, Innovation and Aerospace Industry, addressed the June 11 meeting of parliament on the subject, which was at the time debating the regulation of digital technologies.

In its current state the bill disallows the issuing and circulation of unsecured digital assets “except as otherwise provided by law”, a ban that doesn’t apply to cryptocurrency mining which the government considers an entrepreneurial activity.

Crypto Mining “Part of Everyday Lives”

Addressing the Senate, Zhumagaliyev said digital mining has become available to many more people in the country and highlighted the big income potential for those involved in the practice:

We see today that activities such as digital mining and cryptocurrency are part of our everyday lives. I would like to note that there are 14 such digital farms in Kazakhstan and they are built near energy sources that can connect to them. They have already brought 82 billion tenge (US$201.7 million) of investments in the country.

Zhumagaliyev added that he expected “another 300 billion tenge (US$738.4 million) in the next three years as digital investments and in general, the [sic] further development of digital mining.”

Kazakhstan threw itself into cryptocurrency mining in 2018, boosted by very cheap electricity – at the time, only Venezuela, Argentina, and Algeria offered cheaper energy prices. It seems that, like Iran, Kazakhstan is not a fan of cryptocurrency being used by citizens but it has no problem with crypto mining – as long as it gets its whack in taxes.