Kazakhstan Seeks to Reboot Crypto Mining with Tax Incentives
Kazakhstan, once the world's second-largest center for cryptocurrency mining after the US, is trying to revive its mining industry by offering tax incentives and legal certainty.
The country was a hub for miners in 2021, after China banned Bitcoin mining, but it led to an overload on the national power grid and authorities had to shut down three power plants in October that year.
In response, regulations were tightened on electricity consumption and digital assets, leading to many miners leaving or operating illegally. However, the government has now offered private investors a three-year tax exemption on individual income from transactions involving digital assets, provided they are not linked to fraud, money laundering, or unlicensed crypto services.
Kazakh citizens own approximately 1 million crypto wallets, according to data from the Astana International Financial Center (AIFC).