If you're thinking about setting up a crypto mining operation in Kazakhstan, you need to understand one thing upfront: it's not as simple as buying rigs and plugging them in. Since 2023, the country has moved from a loosely monitored space to one of the most tightly controlled mining environments in the world. And by 2026, the rules have gotten even stricter. This isn't about banning crypto - it's about controlling it. If you want to mine legally in Kazakhstan, you’re playing by the government’s rules, and those rules are detailed, expensive, and slow.
Only the AIFC Can Issue Licenses
You can’t just walk into a government office in Almaty or Nur-Sultan and apply for a mining license. All crypto mining licenses in Kazakhstan are issued exclusively through the Astana International Financial Center (a special economic zone designed to attract foreign investment with Western-style financial regulations, AIFC). This isn’t a suggestion - it’s the law. If your company isn’t incorporated within the AIFC, you’re operating illegally, no matter how many rigs you have running. The AIFC isn’t just a paperwork hub. It’s a fully functional financial jurisdiction with its own courts, regulators, and tax code. To even start the process, you need to establish a legal entity inside the AIFC. That means renting office space in their building, hiring at least two local employees - one as your AML officer and another as your compliance officer - and setting up a corporate bank account in Kazakhstan. You can’t do this remotely. You need boots on the ground.You Must Use a Licensed Digital Mining Pool
Here’s where Kazakhstan’s system gets truly unique. In most countries, miners can operate solo or join any pool they want. In Kazakhstan, you’re forced to join one of only five government-approved Digital Mining Pools (DMPs) (regulated entities that aggregate mining hash power and distribute rewards under state supervision). These pools aren’t just technical networks - they’re control points. Every hash rate you contribute is tracked. Every payout is monitored. And every coin you earn is subject to the government’s next big rule: you have to sell 75% of your mined cryptocurrency on AIFC exchanges. That’s up from 50% in 2024. The government isn’t just watching - it’s taking. This policy forces miners to convert their crypto into fiat currency within Kazakhstan, giving the state direct control over capital outflows. It’s one of the strictest currency controls on crypto mining anywhere.The Licensing Process Takes 6 to 9 Months
Don’t expect to get approved in a few weeks. The AIFC licensing process is broken into three phases, and each one demands serious preparation.- Preparation Phase: You need a full business plan, financial projections backed by real data, corporate documents from your parent company (if applicable), and detailed AML-CFT policies. You also need KYC software ready to onboard clients - even if you’re not a service provider. The government wants to see you can track every dollar, even if you’re just mining.
- Incorporation Phase: You must legally register your company in the AIFC, pay the required share capital (amount varies by scale), rent office space, hire your two local staff, and appoint a management board with at least four people - including a CEO, CFO, compliance officer, and AML officer.
- Application Phase: You demonstrate your systems are live. That means showing the regulators your AML software in action, your client onboarding process, and your management team’s experience. You might even need to run a test mining operation or show a working prototype of your setup.
Miners Can’t Do Anything Else
Kazakhstan doesn’t want crypto miners to be side hustlers. If you get a license, you’re legally restricted to one thing: digital mining. You can’t run a trading desk. You can’t offer cloud mining services. You can’t sell hardware. You can’t even accept crypto payments for other services. This rule exists to prevent money laundering through disguised operations. The government wants miners to be transparent, isolated, and trackable. It’s a blunt tool, but it works. If you try to expand your business beyond mining, your license can be revoked immediately.Taxes Are Low - But the Real Cost Is Higher
On paper, the tax rate for crypto mining in Kazakhstan is 15%. That’s competitive - lower than the U.S. federal rate for corporations, and much lower than countries like Germany or France. But the real cost isn’t just taxes. You’re paying for:- Office rent in the AIFC - $5,000 to $15,000 per month depending on size
- Two full-time local employees - $40,000 to $60,000 per year combined
- Legal and compliance consultants - $20,000 to $50,000 in setup fees
- Share capital deposit - $100,000 minimum for medium-sized operations
- 75% of your crypto must be sold on AIFC exchanges - meaning you lose control over when and how you cash out
Why Kazakhstan Wants Your Mining Operation
Kazakhstan didn’t build this system to be harsh. It was built to survive. After China banned mining in 2021, thousands of rigs flooded into Kazakhstan. The country’s cheap electricity and cold climate made it a natural fit. But with no rules, the sector exploded - and so did grid instability. Power shortages hit cities. The government had to ration electricity. Now, they’ve turned mining into a controlled resource. The state wants miners to use surplus energy - especially from coal plants during off-peak hours. There’s even a proposed 70/30 energy deal: 70% of new power generation goes to the national grid, 30% to licensed miners. They also want the money. In 2024, AIFC exchanges handled over $1.4 billion in crypto sales. That’s foreign currency flowing into Kazakhstan’s banking system. The government doesn’t care if you mine Bitcoin or Ethereum - they care that you sell it locally.
Who This System Works For - And Who It Doesn’t
This licensing model is perfect for:- Large mining funds with global backing
- Energy companies looking to monetize excess power
- Investors who want regulatory clarity and long-term stability
- Companies planning to build data centers that double as mining hubs
- Individual miners with a few rigs
- Startups without $500K+ in capital
- Operators who want to stay anonymous
- Anyone who wants to hold their crypto instead of selling it
What’s Next? The Government Is Still Building
Kazakhstan isn’t done. In 2025, regulators began talking about a state-backed crypto reserve - essentially a sovereign fund that holds crypto assets mined under license. They’re also pushing to decriminalize crypto trading for users on licensed platforms, which could mean more retail adoption down the line. The number of licensed miners has grown from 84 in 2023 to over 120 by early 2026. More than 415,000 mining machines are now registered. That’s not a small operation - it’s a national infrastructure project. The message is clear: if you want to mine in Kazakhstan, you’re not just a business owner. You’re a partner in a state-led economic experiment. And the rules will keep changing - always toward more control, more transparency, and more state revenue.Can You Still Mine Illegally?
Technically, yes. But you’re taking huge risks. Unlicensed miners face fines, equipment seizures, and even criminal charges under Kazakhstan’s anti-money laundering laws. The government has already raided several underground mining farms in the southern regions. They’re using AI to detect unusual power spikes in residential areas. If your electricity bill looks like a data center’s, they’ll come. The safest path - and the only legal one - is through the AIFC. It’s expensive. It’s slow. But it’s the only way to operate without fear.Do I need to be a Kazakh citizen to get a mining license?
No. Foreign individuals and companies can apply for a mining license through the AIFC. But you must incorporate a legal entity within the AIFC, rent office space in Astana, and hire at least two local employees - one as an AML officer and one as a compliance officer. You don’t need citizenship, but you do need a physical presence.
How much does it cost to set up a licensed mining operation in Kazakhstan?
The total setup cost ranges from $300,000 to $750,000 depending on scale. This includes AIFC incorporation fees, office rent, local staff salaries, legal compliance services, share capital deposit, and AML software. The 75% mandatory sale requirement also reduces your potential profits, so you need to factor that into your ROI model.
Can I mine Bitcoin and Ethereum under the same license?
Yes. Your license covers all types of digital mining, regardless of the cryptocurrency. The regulation focuses on the activity - not the coin. But you still must use an approved digital mining pool and sell 75% of your output on AIFC exchanges, whether it’s Bitcoin, Ethereum, or another asset.
What happens if I don’t sell 75% of my mined crypto on AIFC exchanges?
You’re in violation of your license terms. The AIFC can issue fines, freeze your operations, or revoke your license entirely. Enforcement is strict. The government tracks all mining pool payouts and cross-checks them with exchange records. If you try to move crypto offshore, you’ll be flagged.
Is the 15% tax rate permanent?
There’s no guarantee. The 15% rate was introduced to attract investment, but the government has already increased the asset sale requirement from 50% to 75% in just one year. If revenue targets aren’t met, taxes could rise. Mining licenses are renewable annually, and terms can change with each renewal.
Can I use renewable energy to qualify for better terms?
Not officially yet. While the government encourages miners to use surplus energy - often from coal or hydro - there’s no formal incentive program for renewables. However, using solar or wind could help you negotiate better power deals with local utilities. Some AIFC-approved miners have started lobbying for green energy credits, but no policy exists as of early 2026.
