President of Kazakhstan Kassym-Jomart Tokayev signed a decree "On measures to stimulate and develop the digital asset industry in the Republic of Kazakhstan." The document legalizes mining using associated petroleum gas (APG) and initiates the creation of a regulated market for digital assets and stablecoins. However, according to calculations by leading industry analysts, a mass migration of miners from Russia to Kazakhstan is not expected.
What Tokayev's decree provides for
In addition to legalizing APG mining, the document establishes a regulated market for digital assets and stablecoins. Key measures include bringing crypto asset transactions into the legal framework, creating conditions for the voluntary disclosure of digital assets with subsequent transfer to platforms of domestic providers, allowing businesses to use stablecoins for cross-border payments, and exempting individuals' income from digital asset transactions from personal income tax, provided regulated infrastructure is used.
The model of voluntary disclosure with the transfer of assets to domestic providers structurally echoes Russian discussions on wallet disclosure. At the same time, regarding stablecoins, Kazakhstan has taken a more liberal stance, allowing them for business cross-border settlements, whereas the Central Bank of Russia, in its June report, only permits them for foreign economic activity.
Mining on associated gas is not a panacea
Founder of NGE Farm Dmitry Zuev draws attention to the technical features of APG itself. According to him, generating electricity from associated gas is an inefficient and costly process, as APG is very sulfurous and dirty, requiring significant capital expenditure for its purification. This is why existing Russian projects mainly operate not on APG, but on other types of fuel — dry stripped gas and natural gas. Both options are cleaner, and organizing mining infrastructure for them is cheaper.
Will miners flee from Russia to Kazakhstan?
Both experts agree: there will be no mass migration of Russian miners to Kazakhstan. Dmitry Zuev points to infrastructure ties — equipment was brought into Russia with Russian VAT, and moving it involves significant costs. He acknowledges potential interest from new investors but emphasizes that key factors will be tax policy and the price of APG.
Independent mining expert Ilya Komolov confirms this conclusion with specific figures and historical precedent. His company services data centers in Almaty and has worked with local sites for over four years. He recalls that in 2020, Kazakhstan ranked 2nd-3rd in global hashrate, but due to complex requirements for legal registration, miners left Kazakhstan for Russia. Currently, the price of gas in Russia is 7-8 rubles per cubic meter, while in Kazakhstan it is 14 rubles. Added to this are the costs of building infrastructure and relocating the company.
Taxes, Belarus, and Kazakhstan's prospects
Ilya Komolov acknowledges that mining in Russia is also becoming more difficult due to the price of Bitcoin, the dollar exchange rate, and the 22% corporate income tax. However, he identifies not Kazakhstan but Belarus as the most advantageous jurisdiction, where the tax on mining income is currently only 1%. His company is building a large 80 MW facility jointly with the Hi-Tech Park in Belarus. Comparing conditions: Belarus — a tariff of 4 rubles per kilowatt with a more favorable tax base; Russia — 5.5 rubles per kilowatt and a 22% tax.
As for Kazakhstan, the expert does not rule out positive development if a free economic zone with cheap gas is created there. However, it remains unclear how ready the state is for such a step, given that Kazakhstan itself purchases gas from other countries.
Problems of Russian miners
The difficult conditions in Russia are confirmed by statistics. Out of nearly 200,000 miners in Russia, only about 5,500 have officially registered their activities — approximately 97% of the market remains in the shadows. By the end of 2025, the treasury may claim only 567 million rubles in tax revenue from mining instead of the planned 6 billion — about 9% of the target.
At the same time, the geography of legal mining is shrinking. From January 1, 2025, to March 15, 2031, mining is completely banned in ten regions. Since April 2025, the Irkutsk region has been added. In May 2026, new restrictions were considered at the government commission on electric power — for Moscow, the Moscow region, and several areas of the Kursk region. A larger-scale scenario is also being discussed — a ban on mining across the entire Unified Energy System of the Center, which includes 19 regions and about a quarter of the country's consumption.
Against this backdrop, authorities are betting on energy-surplus regions: relocating equipment to areas with excess electricity should, according to lawmakers' plans, fill the budget, create jobs, and stimulate domestic consumption. Simultaneously, Russia is preparing fines for illegal mining to push gray market players into the legal framework.
Conclusions
Expert positions align in assessing near-term prospects: neither the technical features of APG nor current conditions make Kazakhstan a magnet for existing miners. They differ in emphasis — Dmitry Zuev focuses on the general industry decline and technology, while Ilya Komolov operates with specific tariff economics and points to Belarus as a more obvious alternative. At the same time, the tightening of conditions within Russia — the growth of restricted zones, miners moving into the shadows, and the 22% tax — creates pressure that could, in the long term, push some players to seek new jurisdictions.
Cryptalist's opinion: Belarus, with its 1% tax and cheap electricity, indeed looks like a "tax haven" for mining. However, one should not forget about geopolitical risks and potential sanctions restrictions that could negate all economic attractiveness. Kazakhstan, despite its liberal stance on stablecoins and APG, so far loses in direct competition for capacity due to higher energy costs.