Kazakhstan mining tax changes and gas power rules

The Kazakh government implemented a fixed rate of 2 tenge per kilowatt-hour for digital mining consumption using the national grid starting January 1, 2024. This replaces a differentiated rate that previously hit miners for 26 tenge per kilowatt-hour depending on electricity costs. For miners using their own power generation, the rate dropped to 1 tenge per kilowatt-hour. I find the push toward autonomous power the most logical part of this strategy. It targets the 1.2 to 1.3 terawatt-hours of electricity that could be produced from associated petroleum gas flared at roughly 40 to 60 oil fields. Daniyar Mubarakov, head of the Blockchain and Digital Mining Association, notes that Kazakhstan flared between 300 million and 340 million cubic meters of this gas in 2024.

Miners face a steep 25 KZT per kilowatt-hour penalty if they operate without working electricity metering devices. This penalty aims to curb the impact of "gray miners" who avoid taxes and strain the grid. Digital development minister Bagdat Musin stated that the energy costs of illegal mining exceed 1 gigawatt. The government also aims to capture more revenue through new rules for digital mining pools. These pools must submit data on asset distribution to tax authorities by the 25th day of the following month, a requirement starting April 25, 2026.

New electricity tariffs and gas autonomy

The government provides a path for miners to bypass the national grid entirely by using gas from oil fields. A July decree allows oil producers to use flare gas for off-grid power generation to supply crypto mining. This reduces pressure on a power system that previously saw a 7% consumption surge in 2021. While the government intends to build 3,000-megawatt capacity in natural gas and renewables over five years, the immediate focus remains on these autonomous facilities. The Ministry of Artificial Intelligence and Digital Development works on a legal framework to set rules for how miners and oil producers deploy this gas-to-power model.

The tax landscape for individual traders changed with a decree signed July 7. This policy offers a three-year personal income tax exemption for digital asset transactions made through local providers. This exemption runs from January 1, 2026, to December 31, 2028. The government also plans to develop a specific tax incentive by September 1, 2026, for users who move assets from foreign platforms into Kazakh regulated infrastructure. To get these benefits, you must use domestic service providers. The government wants to pull assets out of offshore wallets and into the local market. However, the narrow scope of the VAT exemption, which only applies to AIFC-licensed exchanges, creates a disadvantage for other domestic platforms.

Regulatory shifts and mining economics

The removal of the Astana International Financial Centre monopoly allows miners to circulate assets outside the center. Licensed entities can now transact with independent trading platforms without routing sales through AIFC exchanges. This change follows a period where the government tightened controls to manage electricity shortages. In January, the state-run operator KEGOC stopped providing power to miners to protect the grid. This move cost "white miners" up to $1 million daily, according to Alan Dorjiyev of the Association of Blockchain and Data Center Industry.

The current tax code for 2026 treats the receipt of mined assets as the moment of taxation. For legal entities, income tax sits at 20%, while individual entrepreneurs face progressive rates of 10% to 15%. To prevent double taxation, the law excludes the subsequent sale of these assets from aggregate annual income. The rules for determining asset value entered into force on January 1, 2026.

The transition to using flared gas involves complex negotiations regarding priority rights. The decree stipulates that miners can use gas at oil fields if the national company QazaqGaz declines its priority right to the resource. Will the technical requirements for these autonomous power-generation facilities prevent small-scale operators from participating?