In the words of the President of Kazakhstan Kassym-Jomart Tokayev, “Cryptocurrencies are an objective factor that cannot be simply ignored. It is necessary to clearly evaluate their potential to influence the current financial system.”
The Cambridge Centre for Alternative Finance (CCAF) revealed that Kazakhstan-based miners accounted for 13.22% of the total Bitcoin hash rate, with the country’s monthly hash rate averaging 24.8 Eh/s.
Currently, Kazakhstan is the third largest contributor to Bitcoin mining after the US (37.84%) and China (21.11%). Kazakhstan has held this position since February 2021.
Together, the US, China and Kazakhstan hold a significant share of Bitcoin mining at 72.17%.
Before July 2021, China was the largest hub for crypto miners and alone held over 65% of miners. The country’s mining share dropped significantly after the crypto mining ban caused several crypto miners to migrate to other regions. A majority of them were welcomed by Kazakhstan.
Kazakh authorities are stepping up the crypto regulations. A few days ago, they announced a draft bill to create a framework for miners. This law will require crypto miners to deposit 75% of their revenue in local exchanges starting in 2024.
Tokayev noted,
“If this financial instrument shows its further relevance and security, it will certainly receive full legal recognition.”
