The Political Economy of Crypto-Mining Regulation in Kazakhstan: Exploring Legal Frameworks

• In Event: Crime, Science and Politics WG Panel 2. Criminal Policy Evolution: not always forward

Abstract

This article employs a criminological perspective to analyse the legal regulation surrounding the crypto-mining industry in Kazakhstan, aiming to uncover the intricate interplay between economic interests, power dynamics, and legal frameworks within the grey economy. Through this lens, I scrutinise the legal landscape of crypto-mining in Kazakhstan, exploring how economic imperatives, political influences, and historical legacies in the energy sector shape the crypto-mining industry in Kazakhstan.

Drawing on principles of political economy, I examine the trajectory of crypto-mining in Kazakhstan, tracing its evolution from government promotion to regulatory challenges and industry transformations. Initially heralded as a lucrative opportunity for economic growth, crypto-mining gained traction in Kazakhstan, driven by government support and incentives. However, as the industry expanded, it encountered hurdles such as electricity shortages, corruption allegations, and regulatory ambiguities. This analysis examines the current narrative that creates the dichotomy between white and grey miners, situating regulatory dynamics within broader economic and political structures. The paper scrutinises how regulatory frameworks, shaped by economic interests and political influences, impact the practices of different mining actors.

My analysis contributes to criminological studies of grey economic activities by highlighting not only how the grey economy operates in Kazakhstan but also how it is used to develop a narrative by some of the actors. By critically examining the nexus of law, economy, and politics, I aim to provide insights into the complexities of regulatory governance and its implications for the crypto mining industry and broader socio-economic development in Kazakhstan.

Author

• Gulzat Botoeva, Swansea University