The minister stated: Kazakhstan will become the "Central Asian encryption center" through reforms.

Source: Cointelegraph Original text: "The minister said: Kazakhstan will become the 'Central Asian Crypto Hub' through reforms."

According to Kanysh Tuleushin, the First Deputy Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan, if regulatory restrictions are relaxed, Kazakhstan has the potential to become the leading cryptocurrency hub in Central Asia.

In a recent column written for the Kazakhstan Truth newspaper, Tuleushin emphasized that digital mining and smart policy adjustments will be able to propel Kazakhstan to become a regional leader in the field of blockchain innovation.

"If all restrictions are lifted and digital asset trading is legally permitted throughout Kazakhstan, the impact will be significant," he pointed out in the text.

"Kazakhstan is expected to become the crypto hub of Central Asia," Tuleushin further added, stating that a broader legalization framework and tax system could bring additional revenues of hundreds of billions of tenge to the national budget.

He called for the establishment of a unified national cryptocurrency regulatory framework, the creation of transparent trading platforms, and the establishment of legal cryptocurrency ATMs.

Tuleushin pointed out that cryptocurrency mining companies can play a key role in the modernization of the country's energy infrastructure. He emphasized that, similar to the situation in the United States, miners in Kazakhstan can help balance the national grid by absorbing surplus electricity.

By implementing the "70/30 Energy Plan," foreign investors provide funding support for the upgrade of thermal power facilities, where 70% of the generated capacity will be delivered to the national grid, and the remaining 30% will be allocated for miners' use.

He also suggested using the associated gas from oil fields to power data centers, a move that can reduce carbon emissions while creating additional revenue for oil production companies.

Tuleushin revealed that Kazakhstan's cryptocurrency mining industry has contributed 34.6 million USD in taxes to the country over the past three years. As of the end of 2023, the government has officially registered 415,000 mining devices, issued 84 operating licenses, and certified 5 mining pools.

The trading volume of cryptocurrencies on the Astana International Financial Centre (AIFC) exchange surged from $324 million in 2023 to $1.4 billion in 2024. Starting from 2025, miners will be required to sell 75% of their mined asset income through the AIFC platform.

Despite significant progress, crypto trading outside the AIFC remains largely in a regulatory blind spot, with an estimated total trading volume of $4.1 billion in 2023, of which 91.5% occurs outside of government regulation.

In 2024, law enforcement has shut down 36 illegal exchanges, frozen funds amounting to 4.8 million dollars, and successfully dismantled two Ponzi schemes.

The country is also actively developing a domestic central bank digital currency (CBDC) - the digital som. The project was launched in February 2023 and is scheduled to officially launch its first version in 2025.

Apart from Kazakhstan, other Central Asian countries such as Uzbekistan and Kyrgyzstan have also adopted an open and friendly attitude towards the digital asset industry.

On May 7th, Binance signed an MOU with the National Investment Agency of Kyrgyzstan to introduce cryptocurrency payment infrastructure in the country and promote blockchain education projects.

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