Kazakhstan’s plan to tighten its grip on cryptocurrency might surprise some crypto enthusiasts. Last month, the country’s officials revealed that around $15 billion left Kazakhstan through crypto channels in just one year. That’s a lot of money leaving a country where the average person earns about $640 per month.
President Kassym-Jomart Tokayev isn’t happy about this situation. He recently ordered his government to create stricter rules for buying and selling digital coins. “We cannot allow our nation’s wealth to disappear into digital wallets beyond our borders,” Tokayev said during a special meeting in Astana.
Kazakhstan became a crypto mining hotspot after China banned the practice in 2021. Many Chinese miners moved their powerful computers to Kazakhstan, attracted by the country’s cheap electricity. Today, Kazakhstan is the world’s third-largest crypto mining location, behind only the United States and China.
But this crypto boom created problems too. The massive energy use from mining farms caused power shortages across the country. Many citizens faced blackouts during cold winter months while mining operations consumed electricity equal to what several cities would use.
The National Bank of Kazakhstan found that much of the money flowing through crypto comes from questionable sources. “About 60% of these transactions show signs of being connected to scams, gambling, or other potentially illegal activities,” said Yerbolat Dossayev, the bank’s chairman.
Under the new rules coming this summer, anyone buying or selling crypto in Kazakhstan will need to register with the government. They’ll also have to explain where their money comes from and where it’s going. Crypto exchanges will need special licenses to operate in the country.
Some locals worry these changes might hurt Kazakhstan’s growing tech industry. “We were just starting to build a real tech ecosystem here,” said Arman Suleimenov, who runs a blockchain startup in Almaty. “Too many restrictions could push innovation to other countries.”
But government officials insist they aren’t against cryptocurrency itself. “We want to embrace blockchain technology while protecting our economy,” explained Finance Minister Yerulan Zhamaubayev. “This isn’t about stopping progress—it’s about responsible growth.”
The new regulations will create a special economic zone called the Astana Crypto Hub. Companies operating there will get tax breaks if they follow strict transparency rules. The hub aims to keep legitimate crypto businesses in Kazakhstan while filtering out shadowy operators.
Kazakhstan isn’t alone in tightening crypto rules. Across Central Asia, governments are trying to balance the potential benefits of digital currencies with concerns about financial stability. Uzbekistan recently launched a licensed crypto exchange, while Kyrgyzstan is developing its own regulatory framework.
For ordinary Kazakhs, the impact of these changes remains unclear. Dinara Kenesova, who works at a tech company in Nur-Sultan, said she uses small amounts of crypto to send money to relatives abroad. “I hope they don’t make it impossible for regular people to use these services,” she said.
Experts believe Kazakhstan’s approach could become a model for other developing economies. “They’re trying to thread the needle between encouraging innovation and preventing economic harm,” explained Michael Carter, a cryptocurrency analyst at CoinDesk.
The cryptocurrency industry continues to evolve rapidly worldwide. Kazakhstan’s struggle shows how countries are learning to adapt to this financial revolution while protecting their economic interests. Whether these new regulations will successfully balance innovation and security remains to be seen.
