75% output mandate ignites protests among Kazakhstan’s crypto miners

Kazakhstan’s requirement that miners sell 75% of their mined coins on local exchanges is fueling discontent in the industry. The Blockchain and Digital Mining Association claims these restrictions deter major foreign investors who prefer to trade on global marketplaces for better liquidity. Several international companies are now reconsidering their expansion into the region.

Currently, around 171 active mining companies operate under strict conditions, contributing 3.5 bln tenge in taxes over the first two quarters of 2024. Experts warn that up to 20% of operational firms might exit by year’s end if this quota remains unchanged.

While the government has yet to offer an official response, multiple ministries have confirmed that easing the 75% requirement is under discussion. Unofficial sources suggest revisions may be introduced before 2025 to retain Kazakhstan’s appeal for global mining enterprises.