Total Timeframe:6-9 months (depending on document completeness)
Estimated Costs:
Legal & Consulting Fees: $10,000-$25,000
Office Rent (AIFC): ~$500/month
Initial Share Capital: 10 million KZT (~$22,000)
Licensing Fee: ~2 million KZT (~$4,400)
Operational Setup: ~$50,000
Tax Obligations:
Flat 15% Corporate Tax on Mined Revenue
75% of Assets Must Be Sold on AIFC Exchanges
Penalty of 5% per Month for Non-Compliance
Key Requirements Overview
Applicant Types: Local LLC/JSC or Foreign Investor with Local Subsidiary
DMP Membership: Mandatory for all mining operations
AML/CFT Compliance: Required policies and officers
Share Capital: Minimum 10 million KZT
Asset Sale Rule: 75% of mined assets must sell on AIFC exchanges
Quick Summary
Licensing is handled exclusively by the Astana International Financial Center (AIFC).
Applicants must be a Kazakh legal entity or individual entrepreneur.
All mining must run through a registered Digital Mining Pool (DMP).
Process takes 6‑9months and follows three phases: preparation, incorporation, final application.
Tax rate is 15% and 75% of mined assets must be sold on AIFC exchanges.
Kazakhstan crypto mining license is the key to entering one of the world’s fastest‑growing mining hubs.
Regulatory Framework Overview
In 2023 the Kazakh government issued Order No.384, converting crypto mining from a permit‑based activity to a notification‑based one. While the notification system removes the need for a classic permit, the AIFC still controls every mining operation through a formal licensing process. The goal is to attract foreign investment, secure the country’s energy surplus, and keep tight AML‑CFT oversight.
Who Can Apply?
Only two legal forms are accepted:
A Kazakhstan‑registered legal entity (LLC, JSC, etc.).
An individual entrepreneur registered under Kazakh law.
Foreign investors must either set up a local subsidiary or partner with a Kazakh entity. The applicant also needs documented rights to a data‑processing centre-either ownership or a lease agreement that complies with local regulations.
Key Entities You’ll Meet in the Process
Astana International Financial Center (AIFC) - sole licensing authority.
Digital Mining Pool (DMP) - the only legal way to aggregate hash power.
AML‑CFT - anti‑money‑laundering and counter‑terrorist‑financing framework you must embed.
KYC software - required for client onboarding and risk assessment.
Local AML Officer - at least one Kazakh resident responsible for compliance.
Compliance Officer - another resident who handles day‑to‑day regulatory reporting.
Management Board - minimum four members, including a chair, finance director, technical director, and compliance director.
ICRIAP - the state committee that receives the final notification and monitors ongoing activity.
Step‑by‑Step Licensing Process
The AIFC splits the application into three clear phases. Below is a practical checklist to keep you on track.
Phase1 - Preparation (1‑2months)
Draft a detailed business plan: market analysis, projected hash rate, break‑even point.
Prepare financial projections for the next three years, including capital expenditure on hardware and electricity.
Gather corporate documents from the parent company (articles of association, shareholders list).
Create AML‑CFT policies, select a KYC software vendor, and design client‑onboarding workflows.
Identify senior management and board members; verify they meet local residency and qualification rules.
Phase2 - Incorporation (2‑3months)
Register a new company inside the AIFC jurisdiction. The company name must include “Digital Mining”.
Rent office space within the AIFC business‑centre - a physical address is mandatory.
Hire at least two Kazakh residents: an AML Officer and a Compliance Officer.
Open a corporate bank account in Kazakhstan and deposit the required share capital (minimum 10millionKZT).
Appoint the Management Board (minimum four roles) and file the board register with the AIFC.
Phase3 - Final Application (3‑4months)
Submit the AML‑CFT operational framework, including KYC software screenshots and risk‑assessment matrices.
Provide proof of ownership or lease for the data‑processing centre and a signed agreement with an approved DMP.
Demonstrate a working prototype: show a live hash‑rate dashboard, pool integration, and payout schedule.
Include CVs of all board members, highlighting prior experience in finance, IT, or energy sectors.
Pay the licensing fee (approximately 2millionKZT) and wait for the AIFC’s issuance decision.
Once the license is granted, you receive a notification number that must be displayed on all public‑facing platforms.
Financial & Tax Obligations
Kazakhstan adopts a flat 15% corporate tax on mining revenue. The tax is calculated on the fair‑market value of the crypto assets at the moment they are sold on an AIFC‑approved exchange.
Two key cash‑flow rules apply:
At least 75% of the mined coins must be sold on an AIFC exchange within 30days of mining.
The remaining 25% can be held for up to one year, but any resale later is still subject to the 15% tax.
Failing to meet the 75% rule triggers a penalty of 5% of the unsold value per month, plus a possible suspension of the license.
Operational Rules: Digital Mining Pools & Energy Use
All miners must join a licensed Digital Mining Pool. The pool acts as an intermediary that collects hash power, distributes rewards, and reports every transaction to the AIFC. Independent solo mining is prohibited.
The government also offers the “70/30 energy program”: foreign investors fund upgrades to thermal power plants, 70% of the generated electricity goes to the national grid, and 30% is reserved for crypto mining. Joining this program can lower your electricity cost by up to 15%.
Practical Challenges & How to Overcome Them
Real‑world operators report three biggest hurdles:
Local staffing. Finding qualified AML and compliance officers can be tough. Partnering with a local consultancy that specializes in financial‑services compliance can shorten the hiring cycle.
Physical presence. The AIFC requires a rented office. Many firms share co‑working spaces inside the AIFC building to meet this rule without high overhead.
Documentation load. The business plan and AML‑CFT policies must be bilingual (Kazakh and Russian). Using a bilingual legal firm eases translation errors that often cause rejections.
Tip: Start the preparation phase while your legal team is still negotiating the data‑center lease. Overlapping tasks trim the total timeline to the lower end of the 6‑9month window.
How Kazakhstan Stacks Up Against Other Mining Hubs
Licensing & Tax Comparison (2025)
Jurisdiction
Licensing Authority
License Requirement
Corporate Tax
Asset Sale Rule
Kazakhstan
AIFC
Mandatory DMP membership, 6‑9mo process
15%
75% on AIFC exchanges
United States (Texas)
State utility commissions
No central license, local permits only
21% federal + state
No mandatory sale rule
Canada (Québec)
Provincial energy regulator
Environmental permit required
26% (federal + provincial)
No mandatory sale rule
Norway
Norwegian Financial Supervisory Authority
License needed for large farms
22%
No mandatory sale rule
While the tax rate is comparable, Kazakhstan’s unique DMP requirement and high asset‑sale quota make it the most controlled environment among major hubs.
Next Steps for Prospective Miners
Conduct a feasibility study: calculate expected hash‑rate, electricity cost, and required capital.
Engage a local legal advisor familiar with AIFC licensing.
Secure a lease or ownership claim for a data‑processing centre.
Choose an approved Digital Mining Pool and sign the pool agreement.
Begin the preparation phase and gather all AML‑CFT documentation.
Submit the incorporation documents to the AIFC and wait for the final license.
Following these steps keeps you on track and reduces the risk of costly re‑applications.
Frequently Asked Questions
Do I need to be a Kazakhstan citizen to get a mining license?
No. Foreign companies can apply, but they must either set up a local subsidiary or partner with a Kazakh legal entity. At least two local staff (AML and compliance officers) are mandatory.
What is a Digital Mining Pool and why is it required?
A Digital Mining Pool (DMP) is a state‑registered entity that aggregates hash power from multiple miners. Kazakhstan law forces all mining operators to join a DMP to simplify tax collection, AML reporting, and the 75% asset‑sale rule.
How long does the licensing process normally take?
The AIFC estimates 6 to 9months from the first submission of the business plan to the final license notification, assuming all documents are complete.
What taxes will I pay on mined cryptocurrency?
A flat 15% corporate tax applies to the market value of the coins when they are sold on an AIFC‑approved exchange. Holding the remaining 25% does not incur additional tax until it is sold.
Can I mine any cryptocurrency, or are there restrictions?
The law does not ban specific coins, but the 75% sale rule applies to all mined assets. Some DMPs may limit the list of supported coins for technical or compliance reasons.
The whole licensing circus feels like a secret society auditioning for a spot in the next dystopian novel. They hide behind glossy brochures while demanding cryptic compliance matrices that could fuel a conspiracy theorist’s midnight blog. Every document whispers of hidden agendas, from energy subsidies that suddenly vanish to AML protocols that read like riddles. And let’s not forget the mandatory Digital Mining Pool, a shadowy collective that seems designed to monitor every hash like a surveillance state. The 75% asset‑sale rule feels like a tax collector’s revenge on anyone daring to hold onto coins. They say it’s about market stability, but the timing coincidences with geopolitical tensions are uncanny. The AIFC’s “70/30 energy program” sounds like a benevolent offer, yet the fine print hints at an energy monopoly in disguise. It’s almost as if they want to dictate not just where you mine, but how you think about power. The requirement for two Kazakh residents on staff reads like a cultural infiltration tactic. You’ll need a lawyer, a compliance officer, a board, a pool, and perhaps a secret handshake. The licensing fee, though modest, is just the tip of the iceberg when you add hidden costs. In the end, you’re left wondering if the real reward is the experience of navigating a bureaucratic labyrinth. The process spans months, each phase a fresh chapter in an endless saga. It’s a masterclass in how governments can subtly shape emerging tech ecosystems while keeping the world guessing.
Joyce Welu Johnson
May 2 2025
I get that the steps look overwhelming, but breaking them down into a checklist really helps. Start with a solid business plan and AML policies; those are the foundation. Hiring local AML and compliance officers early can shave weeks off the timeline. Remember that the share capital requirement is fixed, so budget for it upfront. Once you have the office address in the AIFC, the incorporation moves much faster.
Ally Woods
May 2 2025
Honestly, the whole thing feels like a paperwork marathon. If you’re not into red tape, you might lose interest halfway.
Kristen Rws
May 3 2025
Don’t let the numbers scare you – the costs are doable if you plan ahead. Just make sure you have the 10 million KZT ready, and the rest will fall into place. Good luck!
Fionnbharr Davies
May 3 2025
Great summary! The key is to overlap the preparation and incorporation phases. That way you can hit the lower end of the 6‑9 month window. Also, keep the AML documentation bilingual to avoid needless rejections.
Narender Kumar
May 3 2025
One must also consider the gravitas of the regulatory environment. A formal approach, replete with meticulously drafted policies, shall engender the confidence of the AIFC. Moreover, adherence to the 75% sale rule is paramount to avert punitive measures.
Anurag Sinha
May 3 2025
They’re probably tracking every keystroke you make. Trust no one.
bhavin thakkar
May 3 2025
The AML‑CFT framework isn’t just a checkbox; it’s the spine of your operation. Draft it with real risk scenarios, not generic boilerplate. A solid framework will speed up the final review.
Thiago Rafael
May 3 2025
Be precise in your financial projections. The AIFC scrutinises any discrepancy.
Janelle Hansford
May 4 2025
If you’re feeling stuck, try reaching out to a local consultancy. They’ve walked this path before.
Marie Salcedo
May 4 2025
Remember, the 15% corporate tax applies only when you sell on an AIFC exchange. Hold your coins wisely.
dennis shiner
May 4 2025
Nice tip! 😊
Krystine Kruchten
May 4 2025
Good point – the tax timing can be a game changer. Keep track of your sale dates.
Mangal Chauhan
May 4 2025
Absolutely! A clear ledger makes audits painless. 👍
Iva Djukić
May 4 2025
The regulatory schema in Kazakhstan introduces a novel intersection of fintech compliance and energy policy, necessitating a multidisciplinary approach. Stakeholders must align blockchain governance frameworks with the nation's strategic energy diversification agenda. Consequently, the mandatory Digital Mining Pool paradigm serves as both a tax conduit and an AML enforcement vector, consolidating transaction visibility. Integrating these layers demands robust data pipelines and real‑time reporting mechanisms to satisfy AIFC oversight requirements without throttling operational efficiency.
Darius Needham
May 4 2025
How do you see the DMP model evolving with the global push for decentralization?
WILMAR MURIEL
May 4 2025
I’ve seen farms struggle with the 75% sale rule, especially when market volatility spikes. It helps to diversify exchange partnerships early, so you have liquidity buffers. Also, maintain a clear audit trail; it eases the monthly compliance checks.
carol williams
May 4 2025
It’s a delicate dance between regulatory adherence and operational agility.
Ron Hunsberger
May 4 2025
Start with a realistic feasibility study; it’ll guide your budget and timeline. A solid plan reduces surprises later.
Lana Idalia
May 4 2025
If you think the licensing is just bureaucratic red tape, you’re missing the philosophical underpinnings of state control over emergent tech. It’s a subtle power play.
Henry Mitchell IV
May 4 2025
Sounds intense! 😅
Kamva Ndamase
May 4 2025
The colorfully aggressive vibe of the AIFC process can actually fuel community building if you leverage it right.
Irene Tien MD MSc
May 4 2025
Ah, the grand illusion of a “transparent” mining regime – they’ll have you believe that mandatory sales on a state‑run exchange is for market health, while the real agenda is to siphon off the most profitable half of the ecosystem. It’s a classic case of a government masquerading as a neutral facilitator, yet quietly sculpting the crypto landscape to its own benefit. The 15% tax looks modest, but when combined with the 5% monthly penalty for any deviation, it becomes a fiscal vise. And don’t even start on the hidden costs of leasing data‑center space within the AIFC – it’s a subscription to the state’s energy monopoly. In short, the whole setup is a beautifully choreographed performance of control, dressed up as progress.
Maggie Ruland
Sure, because paperwork is always a breeze.