Kazakhstan is on the brink of a significant transformation in its digital landscape, as President Kassym-Jomart Tokayev has enacted sweeping amendments to the nation's artificial intelligence and digitalization laws. These updates, set to become effective soon, aim to establish a more transparent and formally regulated environment for digital assets, particularly impacting the burgeoning cryptocurrency mining sector within the country. This move signifies Kazakhstan's commitment to both fostering innovation and ensuring stability amidst growing digital finance adoption.
Streamlining Cryptocurrency Mining
A core element of the new legislative framework is the reclassification of cryptocurrency mining. Previously treated as digital asset turnover, mining will now allow individuals and businesses to operate legally nationwide without earlier restrictions. This eliminates the former exclusivity of the Astana International Financial Centre (AIFC) as the sole legal zone for licensed mining and exchange operations, opening up regulated crypto activity across the entire country. Furthermore, miners are no longer obligated to sell the majority of their mined assets through AIFC exchanges, granting them greater financial flexibility and independence. This progressive stance is further underscored by the National Bank's exploration of a state-backed crypto reserve, signaling a broader government openness to digital finance.
Enhancing Oversight and Grid Stability
The amendments also introduce strengthened regulations concerning personal data, product labeling, and information security, designed to protect citizens. Consent for data handling must now be time-bound, purpose-specific, and revocable by individuals at any time. Retailers will also be mandated to record transactions using identification-linked cash registers, boosting oversight. Critically, these regulatory shifts were prompted by substantial strain on Kazakhstan's power grid, a direct consequence of a massive influx of crypto miners following China's 2020 ban. To mitigate future energy shortages—such as the nearly 12% surge in electricity demand in the southeast reported by KEGOC—Kazakhstan is considering stricter controls. Proposed measures include capping new mining facilities at one megawatt of electricity and pausing approvals entirely if national applications exceed 100 megawatts, aiming to stabilize the energy infrastructure while cultivating a more controlled digital economy.
