Kazakhstan introduces strategic mining: new rules of the game for the crypto industry
The Government of Kazakhstan has officially approved the rules for strategic digital mining, which will come into effect on August 1. This is a landmark step for the republic, finally legalizing state participation in cryptocurrency mining under special conditions.
According to the document, strategic mining involves operations under a dedicated electricity quota at capped tariffs. In return, miners are required to transfer a portion of the mined assets to the state. These coins are first directed to the autonomous cluster fund "Astana Hub" and then transferred to the trust management of JSC "National Investment Corporation of the National Bank of Kazakhstan" for subsequent investment in the National Strategic Crypto Reserve.
To participate in the program, miners must submit an application through the office of the authorized body or the state electronic database. The requirements for participants are quite stringent: they must have a data center with a capacity of at least 150 MW, connection to networks from substations of 35 kV and above with an allowed capacity of at least 1 MW, and equipment with a hash rate of at least 150 TH/s per unit. Additionally, there must be no debts on mandatory payments, two contracts with communication operators, a service center, and qualified personnel on site.
If rejected due to non-compliance, the miner may reapply after rectifying the issues, except in cases related to the lack of available electricity capacity. After approval, it is necessary to conclude contracts with "Astana Hub" and the energy-producing organization, as well as create a new crypto wallet for distributing the mined assets.
Importantly, the rules allow combining strategic mining with regular digital mining activities. At the same time, the procedure for distributing digital assets to be transferred to the National Strategic Crypto Reserve has been approved, reminiscent of a recent decree by President Kassym-Jomart Tokayev on stimulating the crypto industry.
My analysis: Kazakhstan is betting on scale—the requirements for equipment capacity and infrastructure exclude small players, concentrating strategic mining in the hands of large industrial operators. This could lead to market consolidation and increased transparency, but also creates risks of monopolization if the state begins to dictate terms for asset supply to the reserve. In the long term, this model could serve as an example for other countries seeking a balance between control and innovation.