Kazakhstan builds state crypto reserve from miner tax
Kazakhstan will route 10% of locally mined bitcoin into a sovereign reserve in exchange for capped electricity tariffs, a move to institutionalize the world's fifth-largest mining hub.
Kazakhstan is establishing a national strategic crypto reserve funded directly by its domestic bitcoin mining industry. Under a presidential decree signed July 7 and a government resolution approved July 18, the state will route a portion of mined coins from operators in exchange for cheap, guaranteed power. The framework effectively formalizes a sector that has operated largely in a regulatory grey area since miners migrated there following China’s 2021 ban.
Government Resolution No. 638 creates a "strategic digital mining" program where participating miners receive 10-year electricity contracts at capped tariffs from listed power producers. In return, operators must transfer 10% of their mined digital assets, calculated after deducting power and grid costs, to the state-linked Astana Hub fund each month. These assets will then flow into the National Investment Corporation of the National Bank to be held in the strategic reserve.
The initial allocation draws from the Ekibastuz GRES-1 coal plant, which offers a 300-megawatt quota. To qualify for the subsidized power, miners must operate data centers of at least 150 megawatts using hardware capable of at least 150 terahashes per second. President Kassym-Jomart Tokayev’s decree also directs the government to explore powering future mining operations through associated petroleum gas, natural gas, and renewables.
For market professionals, the reserve’s investment mandate signals a sophisticated approach to state accumulation. Rather than simply holding bitcoin, the fund is authorized to invest in digital assets, related derivatives, and the equity of companies that build or invest in crypto. This structure mirrors sovereign wealth fund tactics and aligns with the central bank’s separate move to invest up to $350 million in crypto-linked funds, following earlier discussions of a $1 billion reserve partly backed by seized assets.
Broadening crypto infrastructure
The mining reserve is one pillar of a wider push to anchor crypto finance inside Kazakhstan’s regulated banking system. The July 7 decree establishes a Committee on Digital Assets and Payment Systems under the National Bank, tasking it with building tokenization platforms, custody services, and crypto-fiat channels.
The government is also targeting offshore activity by offering a three-year personal income tax exemption, running from 2026 through 2028, on crypto gains processed through domestic providers. An amnesty will allow holders to disclose previously mined or acquired coins if they move them into the regulated framework. Additionally, the plan mandates tokenized government securities by the end of 2026 and explores the use of stablecoins for settling cross-border trade.
