Kazakhstan's government has approved a national strategic crypto reserve, funded by a mandatory 10% contribution from bitcoin miners. The reserve will be managed by the National Investment Corporation of the National Bank and can invest in digital assets, derivatives tied to them, and shares of crypto companies. The move positions Kazakhstan as one of the first major mining hubs to create a state-level crypto reserve — a different approach from the U.S., which built its strategic bitcoin reserve from forfeited coins last year.
How the reserve works
Miners must transfer 10% of their mined digital assets to the state after deducting electricity and grid costs. The first approved power source for strategic mining is the Ekibastuz GRES-1 coal plant, which has a 300 MW quota. That plant will feed miners who then hand over a slice of their output.
To sweeten the deal for individuals, the government will exempt personal income tax on crypto gains from Kazakh providers from 2026 through 2028. That three-year window is meant to encourage local trading and investment without the tax bite.
Broader crypto framework
The decree isn't just about the reserve. It calls for a National Cryptocurrency Analysis Center to be established by mid-2027. That unit will track transactions and flag illicit schemes. The government also plans to build tokenization platforms, create stablecoins for cross-border trade, and set custody rules.
Kazakhstan is the world's fifth-largest bitcoin mining hub as of April 2025. The country has been a magnet for miners fleeing China's crackdown, but it's also faced power grid strains. Tapping the Ekibastuz coal plant for strategic mining suggests the state wants to control both energy use and the resulting crypto.
Global context
The U.S. established a strategic bitcoin reserve from forfeited coins last year. Kazakhstan's version is different: it's funded by active mining rather than seizures. The reserve can invest in digital assets, derivatives, and shares of crypto companies — giving the National Investment Corporation a broad mandate to manage the portfolio.
The timing isn't accidental. With mining margins under pressure globally, a mandatory contribution could squeeze smaller operators. But the tax exemption for individuals might offset some of that friction.
The next concrete step: the National Investment Corporation will need to set up management protocols for the reserve. The analysis center is due by mid-2027. For now, miners in Kazakhstan are looking at their power bills and calculating what 10% after costs actually means.
