Kazakhstan Taps Gas Fields for Crypto Mining Power

Kazakhstan has created a framework for using associated petroleum gas and natural gas from oil and gas fields to generate electricity for digital-mining operations. This policy aims to limit added pressure on the national energy system, which was put under strain by the increased demand for power from cryptocurrency miners.

The government issued Decree No. 1347 on July 7, directing officials to develop autonomous power-generation systems that can supply electricity to digital miners when needed. The decree also requires implementation through an action plan that assigns deadlines and responsibilities to government bodies.

Kazakhstan has become a significant location for Bitcoin mining after China's crackdown in 2021. However, the higher electricity demand later placed pressure on the country's energy system, leading to a mining tax of 1 Kazakhstani tenge per kilowatt-hour and tighter registration and oversight.

The framework is part of a broader digital-assets program that covers regulated crypto trading, stablecoin-based cross-border payments, tokenized instruments, and a national strategic crypto reserve. The next step is the development of implementation mechanisms and deadlines assigned under the action plan.