Kazakhstan Bets on Government Crypto Mining and Confiscated Assets For New Crypto Reserve

Key Points

1. Kazakhstan's crypto journey began in 2021 after Chinese mining operations relocated there, initially controlling over 27% of global mining before regulations scaled it back to 4%.

2. Authorities have registered 415,000 mining machines, issued 84 licenses (64 active), and accredited five mining pools, while shutting down 36 unauthorized platforms worth $118 million in 2024.

3. The '70/30 project' allocates 70% of mining capacity to the national grid, and major exchanges like Binance and Bybit are becoming regulated Digital Asset Trading Facilities (DATFs).

4. Kazakhstan launched the Solana Economic Zone in partnership with the Solana Foundation and plans to develop 'CryptoCity' as a pilot zone for real-world crypto adoption.

5. Despite enforcement efforts, experts estimate 91.5% of crypto transactions in Kazakhstan are illicit, totaling approximately $4.1 billion.