Kazakhstan Plans to Attract $738 Million of Cryptocurrency Investment in Next Three Years

As cryptocurrencies continue to proliferate globally despite ongoing skepticism to their viability, Kazakhstan is making plans to attract 300 billion tenge (US$738.4 million) of investments in the next three years from cryptocurrencies and from investing in digital mining, said the Kazakh Minister of Digital Development, Innovation and Aerospace Industry Askar Zhumagaliyev as he addressed the June 11 plenary session of the Senate, the upper house of the Kazakh Parliament.

Kazakhstan has its own National Data Centers Industry and Blockchain Association.

The deputies discussed the current bill on the floor which concerns the regulation of digital technologies, which categorically forbids the issue and circulation of unsecured digital assets, with one key exception: “except as otherwise provided by law.” 

At the same time, the draft law does not ban digital mining, as it does not consider it as an entrepreneurial activity. 

Addressing the deputies, Zhumagaliyev said digital mining has become available to many in Kazakhstan and noted the big potential. 

“According to the report that we have prepared with international experts, we expect another 300 billion tenge (US$738.4 million) in the next three years as digital investments and in general, the further development of digital mining,” said Zhumagaliyev. 

“We studied the experience of other countries, such as the United States, Sweden, and South Korea. We see today that activities such as digital mining and cryptocurrency are part of our everyday lives. I would like to note that there are 14 such digital farms in Kazakhstan and they are built near energy sources that can connect to them. They have already brought 82 billion tenge (US$201.7 million) of investments in the country,” said the minister. 

Most of these digital farms are located in the country’s northern regions as well as in the Pavlodar and East Kazakhstan Regions as well as Uralsk. 

The draft law is also meant to “determine the authorized body in charge of personal data protection and its main functions, up to and including the regulation of public relations related to the use of digital technologies and the creation of conditions to implement projects in information and communication technologies, as well as establishing the legal basis for the creation and functioning of a national video monitoring system,” according to the Senate press service. 

The document was adopted by the Senate and is now awaiting approval by the Kazakh President.

Get The Astana Times stories sent directly to you! Sign up via the website or subscribe to our Twitter and Telegram!