Kazakhstan Expands Crypto Sector with New Decree on Stablecoins, Tax Breaks, and Energy for Mining

Kazakhstan, one of the world’s largest Bitcoin mining hubs, is moving to expand its crypto sector as a new decree introduces rules for stablecoin payments, tax breaks for regulated crypto activity and new energy options for mining.

Kazakhstan President Kassym-Jomart Tokayev has signed a decree aimed at building a regulated digital asset market, the Ministry of Artificial Intelligence and Digital Development (MAIDD) announced on Wednesday.

Developed jointly by MAIDD, the central bank and the Astana International Financial Centre, the order is viewed as a tool to increase regulatory clarity for crypto businesses, investors and digital asset service providers.

The move signals Kazakhstan’s latest effort to expand its role in the crypto industry and establish itself as a major global crypto hub.

Stablecoins enter Kazakhstan’s cross-border trade plans

In one of its key directions, the decree targets modernization of Kazakhstan’s payments infrastructure, including provisions on creating mechanisms for using digital assets and stablecoins in cross-border settlements.

The government said the move could support export and import operations by adding digital assets to Kazakhstan’s financial toolkit while keeping transactions within a regulated framework.

The order also aims to move crypto activity from foreign unregulated platforms into Kazakhstan’s licensed digital asset infrastructure. Users holding digital assets abroad will be encouraged to disclose them and transfer them to approved domestic service providers.

For individuals, the government plans tax incentives for digital asset activity conducted through regulated infrastructure, including a proposed exemption from personal income tax on related income.

Gas-powered energy plans for digital mining

The action also addresses Kazakhstan’s energy resources, introducing a mechanism for associated petroleum gas and natural gas from oil and gas fields to be used for autonomous electricity generation when those resources are not needed for state purposes.

That electricity could support digital mining operations, adding an energy component to Kazakhstan’s broader crypto strategy, the announcement said.

Kazakhstan ranked third globally by estimated Bitcoin mining hash rate, according to data by the Cambridge Centre for Alternative Finance (CCAF) published in 2022.

Separately, Kazakhstan’s government has introduced a “70/30” energy model that allows data centers and digital miners to directly access up to 70% of new power generation capacity created through infrastructure upgrades.

The decree also outlines plans to develop tokenized financial instruments and national trading infrastructure, as the Central Asian country seeks to attract digital asset investment.

“Our goal is to make Kazakhstan a point of attraction for global capital and expertise while ensuring maximum transparency and protection for every participant in this market,” MAIDD Minister Zhaslan Madiyev said.