The 2 tenge-per-kilowatt-hour tax ($0.0045) on electricity consumed by cryptocurrency mining farms should be abolished, according to Daniyar Mubarakov, president of the Blockchain and Crypto Mining Association.
«With an electricity surplus expected following the commissioning of new generating capacity in Kazakhstan, we propose reclassifying miners as standard wholesale consumers and replacing the current quota-based allocation framework. The tax rate also needs to be reconsidered — specifically, the 2 tenge-per-kWh fee for electricity supplied through the unified power grid and the 1 tenge-per-kWh fee for electricity from autonomous generation sources,» he said at a recent government meeting.
Mubarakov noted that the current taxation mechanism was introduced when the industry was first regulated, at a time when there was a lack of «full transparency.»
«Today, the law on digital assets allows for full visibility into every bitcoin mined and every kilowatt-hour consumed. Therefore, the need for this levy has disappeared,» Mubarakov said.
According to him, the «70/30» program, under which new power plants can supply 70% of their generated electricity to mining farms, would give miners a stable power supply while providing power plants with an additional outlet for their electricity.
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«We also propose developing a state strategy for digital mining and establishing a coordination council to comprehensively review legislative initiatives,» Mubarakov added.
Mubarakov also proposed involving oil and gas companies more actively in using associated petroleum gas to generate electricity, which could then be supplied to mining farms. He said investors would welcome these proposals.
Potential state revenue loss from abolishing the mining tax
Gizzat Baitursynov, vice minister of artificial intelligence and digital development, previously reported that tax revenues from cryptocurrency mining had risen significantly in recent years. The state collected 9 billion tenge in mining taxes in 2023 and 9.9 billion tenge in 2024, while revenue reached 22.4 billion tenge in 2025.
According to Baitursynov, Kazakhstan has 76 licensed cryptocurrency miners and five accredited mining pools, with about 470,000 pieces of mining equipment registered with the government. The existing regulatory framework allows authorities to monitor the industry’s production metrics, ensure transparency and collect tax revenue.
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In particular, mining pools regularly report mined digital assets, allowing the government to track the industry’s operations. A regulatory framework for cryptocurrency exchange operations has also been established through the Astana International Financial Centre.
Proposals have been made to use associated petroleum gas from oil and gas fields and methane from coal mines to support the development of digital mining. Prime Minister Olzhas Bektenov has already issued a directive to explore these options.
Kazakhstan expects electricity surplus by 2027
Kazakhstan is expected to achieve an electricity surplus of about 1.3 billion kWh by the end of 2027 as new generating capacity comes online, Energy Minister Yerlan Akkenzhenov previously reported.
The national project «Modernization of the Energy and Utilities Sectors» envisages the commissioning of 7.3 gigawatts (GW) of new generating capacity by 2029, with total investment estimated at 6.2 trillion tenge. The plan includes both new generation and the replacement of existing capacity.
At the same time, Kazakhstan continues to face electricity shortages during peak consumption periods, particularly in the evening, and has had to purchase electricity from Russia.
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During the summer, amid periods of hot weather, the country’s electricity generation fell short of demand for several consecutive weeks.
