President Kassym-Jomart Tokayev signed a decree on July 8 allowing oil producers to convert associated petroleum gas into off-grid electricity for Bitcoin mining. The initiative, developed with the Ministry of Artificial Intelligence and Digital Development, aims to utilize gas that is typically flared at wellheads.
This policy seeks to restore Kazakhstan's position in the global hash rate market after previous energy shortages led to stricter regulations and an exodus of mining operations. By using stranded energy, miners avoid straining the national grid, addressing the primary cause of earlier political friction.
The decree also provides personal income tax exemptions for gains from transactions on licensed domestic digital asset platforms. Additionally, the government is working on regulatory frameworks for stablecoins and tokenized instruments to facilitate cross-border trade.
