Kraken Prepares Its Entry into the Kazakh Market as the Country Tightens Crypto Regulation

Preliminary Authorization for Payward

The Payward group, which controls the Kraken exchange platform, has received a principle approval from the Astana Financial Services Authority (AFSA) to establish a Kazakh subsidiary. This authorization would allow the new entity to offer a digital asset trading service, provide investment services as principal and agent, and deliver custody services within the Astana International Financial Centre (AIFC). The approval remains conditional: Payward must still meet the remaining AFSA requirements before obtaining a definitive operating licence.

Dave Ripley, co‑CEO of Payward and Kraken, highlighted the constructive cooperation with the AFSA and AIFC teams, thanking the regulators for their rigorous commitment throughout the process. Once the final licence is obtained, Kazakh customers will be able to access Kraken’s global order books, thereby linking the local market to liquidity available in Europe, the United States and Asia.

Kazakhstan’s Transition Toward Regulation

Kazakhstan, which hosted nearly 18 % of the world’s hashrate in 2021 thanks to cheap electricity, has since tightened its control over the crypto industry. Authorities introduced additional fees, licensing requirements and increased supervision to reduce pressure on the national power grid. This evolution has led to a drop in the country’s share of computing power, which now accounts for only 1.6 % of the network according to the hashrateindex.com dashboard.

This reorientation fits into a broader strategy of the Kazakh government, which seeks to develop a regulated ecosystem of digital financial services within the AIFC. Rather than attracting miners solely with low energy costs, the country now focuses on regulated exchanges, custody services and other digital‑asset‑related infrastructure, opening the door to international players such as Kraken.

Role of Mining Pools in the Bitcoin Ecosystem

In Bitcoin mining, pools enable many participants to combine their computing power to increase their chances of creating a new block. Each contribution, called a “share,” is measured statistically and used to distribute the block reward among pool members according to each operator’s rules. This arrangement ensures more frequent payments of smaller amounts compared with solo mining, where earnings are more irregular and dependent on luck.

Kazakhstan’s shift from a mining centre to a regulated hub does not directly affect the Bitcoin protocol rules, but it influences how pools operate locally. A change of pool operator simply involves a new connection to the pool’s server and a different reward distribution, without altering the network’s fundamental principles. Thus, even with a reduced hashrate share, pools remain a crucial link for securing the blockchain and ensuring transaction continuity.