Kazakhstan has unveiled plans to create a national strategic cryptocurrency reserve funded by its domestic bitcoin mining industry, part of a two-step legislative push by President Kassym-Jomart Tokayev to bring the country's sizable mining sector under regulated state supervision. The move positions Central Asia's largest economy alongside a growing roster of nations exploring state-held digital assets, but uniquely ties reserve accumulation to domestic energy production rather than open-market purchases.

A presidential decree signed on July 7 established the policy framework, while Government Resolution No. 638, approved on July 18 and published in the PRG.kz legal database, provided the implementing mechanism. Together, the two measures are designed to channel mining output and cryptocurrency trading through Kazakh infrastructure, with the state claiming a portion of mined coins for a sovereign reserve.

Strategic Digital Mining Program

At the core of the initiative is a newly created program of "strategic digital mining." Under the July 18 resolution, participating miners receive electricity quotas at capped tariffs under 10-year contracts from listed power producers. The decade-long contract structure addresses a long-standing concern among Kazakh miners over regulatory volatility, which has included multiple changes to tax treatment since the sector's rapid expansion in 2021. In exchange for the quotas, miners must transfer a share of their mined output to the state, according to local reporting.

The transfer formula sets the contribution at 10% of mined digital assets, calculated after deducting electricity and grid service costs. Payments are made monthly to the state-linked Astana Hub fund, which forwards the coins to the National Investment Corporation of the National Bank for management within the national strategic crypto reserve.

The first approved power source is the Ekibastuz GRES-1 coal plant, allocated a 300-megawatt quota. To qualify for the program, a miner must operate a data center of at least 150 megawatts, with mining rigs capable of at least 150 terahashes per second, among other requirements. The scale thresholds effectively limit participation to industrial-scale operators, consolidating state oversight over the largest players in the sector.

The resolution defines the reserve as a vehicle for investing in digital assets, derivatives tied to those assets, and shares of companies involved in building or investing in cryptocurrency. Rather than holding coins exclusively, the structure provides the state with diversified exposure to the sector, managed by the National Bank's investment arm.

NEW: Kazakhstan approves "the implementation of strategic digital [asset] mining" and a national reserve pic.twitter.com/go0HT2Nhl6 — Bitcoin Magazine (@BitcoinMagazine) July 23, 2026

Broader Reserve Strategy

The design leverages Kazakhstan's affordable power and established mining base as a channel for state accumulation, an approach distinct from reserve strategies that rely on budgetary purchases or asset forfeiture. Kazakhstan had previously floated a $1 billion crypto reserve built partly on seized assets and state-mined coins, and its central bank moved to invest up to $350 million in crypto-linked funds. The United States established a strategic bitcoin reserve from forfeited coins last year, a model other nations have considered.

Kazakhstan as a Mining Hub

Kazakhstan ranks among the world's largest bitcoin mining hubs, placing fifth by mining activity in the Cambridge Digital Mining Industry Report from April 2025. The country's status was built on cheap coal power that attracted miners following China's 2021 mining ban, though Kazakhstan subsequently tightened its mining rules amid grid strain that led to localized power shortages in 2022.

The new program appears aimed at harnessing that mining base rather than curtailing it. The presidential decree directs the government to utilize associated petroleum gas, natural gas, and renewable energy output for mining operations. Associated petroleum gas, a byproduct of oil extraction routinely flared or vented at well sites, has attracted interest from mining operators globally as a way to monetize otherwise wasted energy resources.

Wider Crypto Regulatory Framework

The July 7 decree extends well beyond mining. It establishes a Committee on Digital Assets and Payment Systems under the National Bank and mandates the development of tokenization platforms, exchange and custody services, and crypto-fiat channels integrated with the financial system. The breadth of the package signals an effort to build a comprehensive domestic crypto economy that captures value onshore rather than losing activity to foreign jurisdictions.

The decree calls for stablecoins to be used for settling cross-border export and import trade, tokenized government securities by the end of 2026, and regulations that segregate customer assets from a bankrupt provider's estate.

To incentivize onshore activity, the decree proposes exempting individuals from personal income tax on crypto gains earned through Kazakh providers from the start of 2026 through the end of 2028. It also provides a disclosure window for holders of coins acquired or mined in the past, provided they migrate them into regulated infrastructure.

Additionally, the government plans to establish a National Cryptocurrency Analysis Center by mid-2027 to track transactions and identify illicit schemes, along with a review of decentralized finance platforms.