Kazakhstan Crypto Mining Restrictions After Energy Crisis: What You Need to Know in 2025

Just five years ago, Kazakhstan was the Bitcoin mining capital of the world. Mines sprawled across its vast steppes, humming with rigs powered by cheap, abundant electricity. But by 2025, the country had turned the tables. What was once an open invitation for miners became one of the strictest regulatory regimes in the world - all because the power grid nearly collapsed.

How Kazakhstan Became the World’s Top Mining Hub

In 2019, after China cracked down on crypto mining, thousands of operations moved to Kazakhstan. Why? Low electricity prices, cold winters that helped cool hardware, and a government that saw miners as economic allies. By 2021, Kazakhstan was producing more Bitcoin hash power than the United States and Russia combined. The country had no formal rules - just open doors.

But the boom came with a hidden cost. Mining farms, many operating illegally, began siphoning off more electricity than entire cities. In rural areas, hospitals lost power during winter nights. Schools turned off heaters. Farmers couldn’t run irrigation pumps. The national grid, built for industry and households, wasn’t designed to handle the constant, massive draw of thousands of ASIC rigs running 24/7.

The Breaking Point: When the Lights Went Out

The crisis peaked in early 2023. Power outages hit major cities like Almaty and Nur-Sultan. The government scrambled. Energy Minister Tuleushin admitted that illegal mining was consuming as much electricity as a city of 200,000 people. By August 2025, authorities dismantled a single underground mining operation in East Kazakhstan Oblast that was pulling 50 megawatt-hours of power - enough to supply 50,000 to 70,000 homes. The miners had bribed utility workers to reroute electricity meant for schools and clinics.

The fallout was immediate. The National Security Committee (KNB) and Financial Monitoring Agency (FMA) launched joint raids. They seized luxury apartments in Astana, high-end SUVs, and cash stashes tied to unlicensed mining profits. Over 36 unregulated exchanges were shut down. Four thousand mining rigs were confiscated. It wasn’t just about energy - it was about corruption, money laundering, and public trust.

What’s Legal Now? The 2025 Rules

Kazakhstan didn’t ban mining. It brought it under control. As of 2025, mining is legal - but only if you follow the rules.

• You need a license from the Astana Financial Services Authority (AFSA). Only 84 licenses have been issued so far.
• All mining equipment must be registered with the National Association of Blockchain and Data Center Industry. Over 415,000 machines are now on record.
• You can only buy electricity through the state-run platform run by the Ministry of Energy. Each transaction is capped at one megawatt-hour - no bulk purchases.
• You must sell 75% of your mined cryptocurrency on licensed AIFC platforms. That’s up from 50% in 2024.
• A 15% tax applies to all mining profits. No exceptions.

There’s no gray area anymore. If you’re mining without a license, you’re breaking the law. And the penalties are steep: asset seizure, criminal charges, and even prison time for those involved in energy theft or money laundering.

How the Government Is Trying to Fix the Grid

The government isn’t just cracking down - it’s trying to rebuild. One proposal, pushed by Energy Minister Tuleushin, is the 70/30 energy deal: foreign investors fund new thermal power plants. Seventy percent of the output goes to the national grid. Thirty percent is reserved for licensed miners.

This isn’t just about fairness. It’s about survival. Kazakhstan’s coal-fired plants are aging. Renewable energy is now a priority. Solar and wind farms are being built near mining zones to reduce pressure on the grid. Some operators now use hybrid systems - solar panels during the day, grid power at night, all monitored by smart meters linked to government databases.

Miners who comply are being offered incentives. Some get priority access to new renewable capacity. Others are invited to partner with state-backed data center projects. The message is clear: you can mine here - but only if you help fix the problem, not make it worse.

What Happens to Illegal Miners?

Illegal mining didn’t disappear overnight. It just went deeper underground. In 2024, authorities found miners using fake utility accounts, tapping into high-voltage lines near substations, and even stealing power from railway systems. One operation was hidden inside a disused textile factory, powered by illegally rerouted cables.

Prosecutors now track mining profits through real estate purchases. If you suddenly own a $500,000 apartment in Almaty with no declared income - you’re on the radar. The FMA uses blockchain analytics to trace crypto flows into local banks. Vehicles bought with Bitcoin? They’re seized. Apartments? Auctioned off. The state is turning mining profits into public assets.

And it’s working. Since 2023, unlicensed mining has dropped by over 80%. The number of active illegal rigs dropped from an estimated 1.2 million to under 200,000 - most of them small, home-based setups that are too low-profile to be worth the risk.

Is Kazakhstan Still a Viable Place to Mine?

Yes - but only for serious players. The days of buying a few hundred rigs and plugging them in are over. The barrier to entry is now high: licensing, compliance, tax reporting, and energy contracts. You need legal counsel, a local partner, and a solid financial plan.

Big mining firms like Bitfury and Core Scientific still operate in Kazakhstan. They’ve adapted. They pay taxes. They use renewable energy. They report everything. And they’re profitable - because they’re playing by the rules.

For individuals? It’s nearly impossible. The 75% sales requirement, combined with the 15% tax and strict reporting, makes small-scale mining unprofitable unless you’re already deep into crypto. The government isn’t trying to scare off miners - it’s trying to scare off the bad actors. Legitimate operators? They’re welcome.

What’s Next for Kazakhstan’s Crypto Policy?

Legislators are already talking about the next phase. One proposed bill would require miners to hold 20% of their assets on registered AIFC exchanges - not just sell 75% of what they mine. That’s a move to increase liquidity and tax collection. Another idea is to create a national blockchain registry for all mining equipment, similar to Russia’s system.

There’s also talk of a digital currency pilot. The National Bank of Kazakhstan is exploring a state-backed digital token that could be used to pay miners in energy credits instead of cash. Imagine mining Bitcoin, but getting paid in digital tokens redeemable for electricity. It’s a way to close the loop - miners help stabilize the grid, and the grid pays them back.

Kazakhstan’s story isn’t just about crypto. It’s about what happens when innovation outpaces infrastructure. The country didn’t give up on blockchain. It learned. It adapted. And now, it’s setting a global example: you can have innovation without chaos - if you’re willing to regulate it well.

What This Means for Global Miners

Kazakhstan’s shift is a warning to other countries. When mining grows too fast, it doesn’t just eat electricity - it eats public trust. France is now looking at using idle nuclear power for regulated mining. Iceland is limiting new licenses. Even Texas is tightening rules after grid stress in winter storms.

Kazakhstan shows that you can’t have a free-for-all and expect the lights to stay on. The best mining hubs aren’t the ones with the cheapest power - they’re the ones with the clearest rules.