Kazakhstan’s minister believes that his country could become ‘Central Asia’s crypto hub’, “if all restrictions were lifted and digital asset trading were allowed across Kazakhstan.”
In a piece written for the Kazakhstanskaya Pravda newspaper, the first Vice Minister of digital development, innovation, and the aerospace industry of Kazakhstan, Kanysh Tuleushin, stated that digital mining has advanced in Kazakhstan, accounting for $34.6 million in tax revenue over the past three years.
In particular, the government registered 415,000 pieces of mining equipment since 2023 and issued 84 licenses (64 valid, 13 suspended, and seven revoked), with three of the five accredited mining pools active.
The increasing number of equipment and license issuance was reflected in the trade volume on exchanges at the Astana International Financial Centre (AIFC), growing from $324.2 million in 2023 to $1.4 billion in 2024.
“Trade in digital assets is allowed only within the AIFC. Experts estimate that the overall transaction turnover for digital assets in Kazakhstan reached $4.1 billion in 2023, with 91.5% conducted outside government oversight,” stated the official.
Moreover, legalizing the gray zone would bring billions of tenge into the budget. “For example, just a 10% tax could generate more than 190 billion tenge per year ($372.9 million), enough to construct dozens of new schools and hospitals from scratch,” stated Tuleushin.
Interestingly, the request to lift the restriction in Kazakhstan comes in the wake of rising illegal activity. “Last year, authorities closed 36 illegal crypto exchanges with a turnover of 60 billion tenge ($118 million), froze $4.8 million in assets, blocked more than 3,500 illegal online crypto exchanges and denounced two financial Ponzi schemes that used cryptocurrency to raise investments, Tuleushin recalled.”
