Crypto miners rejoice: Kazakhstan removes AIFC limits, legalizes national operations

Key Takeaways

What changed for cryptocurrency miners in Kazakhstan?

Mining is no longer classified as digital asset turnover, meaning miners can operate legally nationwide without earlier restrictions or mandatory AIFC-based sales.

Why is Kazakhstan strengthening mining controls?

A surge in miners after China’s 2020 ban strained the power grid, prompting proposals to limit new mining facilities’ energy use and cap national applications.

Kazakhstan is gearing up for a pivotal transformation in its digital economy, as President Kassym-Jomart Tokayev has signed fresh amendments to the nation’s artificial intelligence and digitalization laws.

Set to take effect 60 days after publication, the updated framework aims to bring clearer rules and formal oversight to the circulation of unsecured digital assets across the country. 

Kazakhstan lifts restrictions on crypto mining

Until now, the AIFC was the sole legal zone for licensed mining and exchange operations.

With the latest amendments, that exclusivity is removed, allowing regulated crypto activity across the entire country.

That said, the updates come in two parts.

While one aligns existing laws with the national AI framework, the other strengthens rules around personal data, product labeling, and information security. 

To protect citizens, the law also tightens data-handling norms.

Consent must now be time-bound, valid only for its intended purpose, and individuals can revoke it at any time.

Retailers will also be required to record transactions using identification-linked cash registers, further improving oversight.

A key shift in the new framework is the reclassification of cryptocurrency mining, which will no longer be treated as digital asset turnover.

Rather, it will allow individuals and businesses to mine legally without earlier restrictions.

Miners are also no longer required to sell most of their coins through AIFC exchanges, giving them greater financial flexibility.

Additionally, the National Bank is even exploring the idea of a state-backed crypto reserve, signaling growing government openness to digital finance.

What made Kazakhstan make this move?

After China’s mining ban in 2020, many miners moved to Kazakhstan for cheaper power, putting heavy strain on the country’s grid.

KEGOC reports that electricity demand in the southeast surged nearly 12% in nine months, about 1,500 megawatts, equal to the energy needs of the entire Almaty region.

To stabilize the system, KEGOC began rationing electricity in some areas.

To prevent future strain on the power grid, Kazakhstan is considering tighter controls on mining operations.

A proposed bill would cap new mining facilities at one megawatt of electricity and pause approvals entirely if national applications exceed 100 megawatts.

What’s U.S. crypto mining take in the Trump era?

But as Kazakhstan ramps up mining, the U.S. is moving in a different direction.

After last year’s Bitcoin [BTC] halving slashed rewards and raised mining difficulty, profitability has dropped sharply.

Many American miners, once profitable at $50,000 BTC, are struggling even with prices near $100,000 due to high energy and hardware costs. 

In response, the Trump administration and Congress are expected to fast-track renewable expansion.

With solar, wind, and battery storage growing rapidly, alongside strong nuclear output, carbon-free energy could account for 62% of U.S. electricity next year, surpassing natural gas for the first time.

China’s Bitcoin mining record and more

This further comes at a time when Luxor’s Q4 2025 Hashrate Map reveals China now contributes 14.05% of Bitcoin’s total hashrate, making it the third-largest mining hub globally.

Much of this quiet resurgence is believed to be centered in Xinjiang, where cheap energy continues to attract miners.

Meanwhile, the US finally witnessed the end of the government shutdown, briefly lifting crypto markets, refocusing attention on pending crypto bills, and the December Fed rate decision.

Therefore, as global crypto dynamics shift, Kazakhstan’s renewed openness, the U.S. market’s liquidity reset, and China’s quiet mining resurgence all point to a sector that continues to adapt despite regulatory and macro hurdles.