Kazakhstan has approved new rules for strategic digital mining, advancing its effort to connect regulated electricity access for major crypto mining operators with contributions to a state-backed digital asset reserve.

Kazakhstan emerged as one of the world's largest cryptocurrency mining hubs after China's 2021 ban on crypto mining prompted a wave of operators to relocate, drawn by relatively inexpensive electricity. However, the rapid influx of mining activity contributed to strain on the national power grid, including rolling blackouts in late 2021 and early 2022, leading the government to impose power restrictions and introduce a surcharge on electricity used for crypto mining.

The regulations, approved on July 18, are scheduled to take effect on August 1. The framework is designed to bring large-scale mining activity into a regulated structure while supporting Kazakhstan's broader national strategy for digital assets and state oversight of the sector.

Requirements for Strategic Mining Status

Under the new rules, only large mining companies can qualify for strategic status. Operators must own mining facilities with at least 150 megawatts of installed capacity. That threshold effectively limits eligibility to the largest industrial-scale operators in the country, excluding smaller and mid-sized miners that have historically formed a significant share of Kazakhstan's mining sector. Their equipment must also meet strict computing-performance requirements.

Companies seeking approval must have qualified technical personnel, repair facilities, multiple internet connections, and fully compliant tax records. These requirements are intended to limit strategic status to operators with substantial infrastructure and the ability to meet regulatory and operational standards.

Reserve Contributions and State Management

Approved operators will be required to purchase electricity through designated suppliers. They must also transfer part of the digital assets they mine to Astana Hub.

Those holdings will then be managed by a state investment company under Kazakhstan's National Bank. The reserve may invest in digital assets, related financial products, and blockchain-focused companies. The model represents one of the more direct attempts by a government to capture a portion of mined cryptocurrency for state purposes, and its implementation may be watched by other resource-rich countries evaluating similar frameworks.

The policy links private industrial-scale mining activity with national economic objectives, while expanding Kazakhstan's regulated digital asset ecosystem. It also reflects the country's continued attempt to position itself as a destination for large cryptocurrency mining operations through clearer standards and direct state supervision.