A New Era for Kazakhstan’s Crypto Landscape
Kazakhstan has officially lifted long-standing restrictions on crypto mining and trading, marking one of its biggest policy shifts since emerging as a major global mining hub. The changes were signed into law by President Kassym-Jomart Tokayev, who approved new amendments to the legislation governing artificial intelligence and digitalization. The move effectively ends the dominance of the Astana International Financial Center (AIFC), which previously held preferential rights over mining and crypto services. With the new law taking effect in sixty days, the country will allow individual entrepreneurs and legal entities outside the AIFC to mine and circulate digital assets.
A Break from the AIFC Monopoly
Under the past system, miners operating outside the AIFC faced a restrictive environment that pushed them into a narrow institutional gatekeeping structure. The new framework brings a nationwide greenlight for unsecured crypto asset circulation, though platforms must still secure a license from the national regulator. Officials emphasized that Kazakhstani miners will no longer be required to sell crypto through AIFC-based exchanges, a significant shift that expands liquidity options and aligns the country’s mining sector with global practices. Another major amendment shortens the amount of time personal data may be stored, requiring that an investor’s consent is valid only for the period necessary to fulfill the intended purpose, a move that strengthens data protection standards.
The National Crypto Reserve and the Push for Digital Sovereignty
The easing of mining restrictions follows Kazakhstan’s announcement that it plans to establish a national crypto reserve worth up to $1 billion, including confiscated digital assets and equity stakes in crypto-related companies. Officials said the reserve should be operational by early next year, marking the country's most ambitious digital finance initiative to date. This push signals Kazakhstan’s intent to position itself as a technologically forward nation. As one central bank representative noted in an earlier briefing, the reserve aims to “support economic diversification” and give Kazakhstan long-term exposure to blockchain-based financial instruments.
Why U.S. Miners Are Pivoting to AI Instead of Bitcoin
While Kazakhstan expands its mining freedom, the situation in the United States shows a dramatic contrast. Many American miners are shifting from Bitcoin to AI data center operations, a trend highlighted by Bernstein analysts who said “every major U.S.-listed miner has pivoted toward AI.” The shift reflects shrinking profitability since last year’s Bitcoin halving, which cut mining rewards in half and increased competition as network difficulty soared. Even miners who could profit at $50,000 per Bitcoin are now reportedly struggling at $100,000, squeezed by high capital costs, expensive ASIC deployments, and long return-on-investment timelines. Analysts at VanEck previously predicted that if the twelve largest mining firms shifted just 20% of their resources to AI, collective annual revenue could jump by $14 billion.
Power Demand Surges as the U.S. Faces an Energy Crunch
The U.S. is also dealing with a surge in electricity demand, particularly in Texas, where data centers and mining facilities are expanding rapidly. The Energy Information Administration forecasts an 8.5% rise in market electricity prices by 2026, with megawatt-hour costs climbing to $51. The agency expects energy consumption to continue rising through 2025 and 2026, driven largely by high-density compute systems. The Trump administration and Congress see this growing demand as an opportunity to accelerate investment in renewable power, including solar, wind, and large-scale storage. Projections show renewables hitting 26% of U.S. energy production next year, with carbon-free energy sources reaching 62%, surpassing natural gas for the first time.
