Kraken’s parent company, Payward, has received in-principle approval to expand into Kazakhstan, a country that once controlled roughly 18% of global bitcoin mining activity. Thursday’s announcement positions the exchange to offer trading, investment services, and digital asset custody in a market that has shifted from attracting miners with cheap electricity to building a regulated cryptocurrency industry.
Kazakhstan went from hosting nearly one-fifth of the world’s bitcoin (BTC) mining activity in 2021 to tightening oversight of its cryptocurrency industry. Now, Kraken’s parent company, Payward , is preparing to enter the Central Asian market. On Thursday, the company announced in-principle regulatory approval for its Kazakhstan subsidiary, potentially opening the door to cryptocurrency trading, investment services and custody in a country increasingly focused on regulated digital asset businesses rather than simply supplying cheap electricity to miners.
The Astana Financial Services Authority (AFSA) granted preliminary approval for Payward Kazakhstan to operate a digital asset trading facility, deal in investments as principal and agent, and provide custody services within the Astana International Financial Centre (AIFC). The approval is not a final operating license. Payward must satisfy the regulator’s remaining requirements before commencing licensed activities.
Once authorized, Kazakhstan-based clients would gain access to Kraken’s global order books, connecting local trading activity with liquidity across Europe, the United States and Asia. “The AFSA and AIFC teams have been constructive and rigorous throughout this process, and we appreciate the engagement,” remarked Dave Ripley, co-CEO of Payward and Kraken.
Kazakhstan became a major bitcoin mining destination after China’s 2021 crackdown drove operators across the border. Historically inexpensive electricity, abundant fossil fuels and available industrial facilities helped the country capture approximately 18% of global hashrate at its peak. Today, hashrateindex.com’s global heatmap shows Kazakhstan commands 1.6% of the network’s compute.
That growth came at a cost. Mining operations strained the national electricity grid, prompting authorities to impose additional fees, licensing requirements and tighter supervision. The government has since pursued a broader digital asset strategy through the AIFC, including regulated exchanges, custody businesses and cryptocurrency infrastructure.
Payward’s prospective arrival illustrates that transition. Kazakhstan initially attracted cryptocurrency companies because electricity was cheap. Now, international trading firms are seeking permission to operate under its financial regulations.
Analysts from top crypto firms believe that other investment options, further interest rate tightening, and the still-developing situation in Iran…
