Crypto Booms Amid Regulation and Reform
Kazakhstan has seen its crypto trading volume skyrocket from $324M in 2023 to $1.4B in 2024, thanks to regulatory overhauls and a national push to formalize digital asset markets. In an op-ed for Kazakhstanskaya Pravda, Vice Minister Kanysh Tuleushin laid out the country’s bold ambitions: ease regulations, modernize the energy grid with mining partnerships, and push crypto infrastructure nationwide.
“Miners could help us upgrade our energy system,” Tuleushin wrote, highlighting how the “70/30 project” would dedicate 70% of new thermal power capacity to the grid and reserve 30% for miners.
Crypto-Driven Energy Reform
Kazakhstan is blending crypto and energy innovation. Mining companies — often seen as energy hogs — are being positioned as grid stabilizers, much like in the U.S., where they consume excess electricity during off-peak hours. The “70/30 project” relies on foreign capital to upgrade thermal power stations, with miners getting a slice of the improved capacity.
Since 2023, Kazakhstan has:
- Registered 415,000 mining machines.
- Issued 84 mining licenses (64 active).
- Accredited 5 mining pools (3 still running).
AIFC Becomes a Digital Finance Magnet
Kazakhstan’s Astana International Financial Centre (AIFC) is the country’s digital finance sandbox, operating under independent legal and financial frameworks. The AIFC alone saw trading volumes soar to $1.4B in 2024, a fourfold jump in just one year. But challenges remain. Despite increased regulation, 91.5% of crypto activity in 2023 reportedly happened outside of official oversight, amounting to $4.1 billion in total volume.
Enforcement Gets Tough — But So Does Adoption
Kazakh regulators are cracking down on unlicensed operations:
- 36 unauthorized platforms shut down in 2024
- $4.8M in assets frozen
- 3,500+ unlicensed sites blocked
Still, public interest keeps growing. A RISE Research report shows that crypto ownership in Kazakhstan has doubled in the past two years, and tax revenues from the sector are rising.
Meanwhile, exchange bans are real. Coinbase and Kraken have been blocked for non-compliance, while Binance and Bybit continue to operate legally under local licenses.
The Path Ahead: Nationwide Crypto and Possible Crypto Banks
Digital assets in Kazakhstan are classified into:
- Covered assets – backed by physical items like real estate
- Non-covered assets – including Bitcoin and Ethereum
Trading is currently limited to the AIFC, but Tuleushin’s ministry is working with the National Bank and regulators to expand access beyond this special economic zone. Prime Minister Olzhas Bektenov has even teased crypto banking services, signaling a deeper institutional embrace.
