Kazakhstan Cracks Down on Crypto Mining’s Massive Energy Drain in 2025

Kazakhstan, a global crypto mining hub, is tightening regulations as miners’ energy consumption rivals that of a small city, straining the national grid. On August 11, 2025, authorities busted a $16.5 million illegal mining scheme in East Kazakhstan, where miners consumed 50 MWh of household electricity, enough for 50,000–70,000 residents, per the Financial Monitoring Agency (AFM).

Since China’s 2021 mining ban, Kazakhstan’s cheap electricity attracted miners, but unchecked usage caused blackouts, prompting a 2022 tax on mining energy use and a 2025 law restricting low-cost electricity access. The new legislation mandates licensing, limits miners to 1 MWh from the state platform, and requires 75% of mined crypto to be sold via the Astana International Financial Centre (AIFC). Miners bypassing these rules face penalties, as seen in the seizure of two apartments and four vehicles from illegal operators.

First Vice Minister Kanysh Tuleushin promotes a “70/30” model, where 70% of upgraded power plant capacity supports the grid and 30% powers licensed miners, aiming to modernize infrastructure using associated petroleum gas. However, the Supreme Audit Chamber reported miners consumed 901 million kWh in 2024, costing 13 billion tenge, despite a national energy shortfall projected to hit 5.7 billion kWh in 2025.

The clampdown, including higher tariffs and peak-hour restrictions, has miners pleading for lower energy costs, citing risks of industry collapse. Kazakhstan’s balancing act between crypto revenue—$34.6 million in taxes over three years—and grid stability could set a global precedent. As miners explore renewables, the nation aims to sustain its crypto hub status while ensuring energy security.