Kazakhstan Updates Crypto Mining and Data Regulations

• Kazakhstan widens national access to licensed crypto mining and asset circulation.
• U.S. miners shift to AI as halving pressures and rising costs erode profitability.
• U.S. electricity demand and prices climb amid expanding data centers and mining loads.

Kazakhstan has expanded its regulatory framework for digital assets, approving amendments that formally permit crypto mining and circulation outside the Astana International Financial Center (AIFC). The legislation, signed by President Kassym-Jomart Tokayev, marks a shift away from a system where AIFC-based entities were believed to hold preferential rights in mining and asset trading. 

The new rules, which will take effect 60 days after publication, arrive at a time when global energy markets are tightening and crypto-related power consumption in the United States is drawing increased scrutiny.

Kazakhstan Expands Mining Access and Tightens Data Rules

Under the updated law on artificial intelligence and digitalization, individual entrepreneurs and legal entities across Kazakhstan will be permitted to mine and circulate crypto assets once they obtain the required license. While unsecured digital assets can now move throughout the country, licensed providers will remain responsible for compliance oversight.

The amendments remove the requirement for Kazakhstani miners to route most of their sales through AIFC-based exchanges, enabling them to transact with other platforms. The legislation also introduces limits on the duration for which personal data may be processed. Consent provided to banks or crypto exchanges will remain valid only for the period needed to fulfill the stated purpose of collection.

The policy update follows the country’s announcement of a planned national crypto reserve expected to hold up to $1 billion in assets, including confiscated digital currencies and equity stakes in companies connected to the sector. Officials aim to activate the reserve early next year.

U.S. Miners Turn Toward AI as Post-Halving Pressures Mount

While Kazakhstan opens new pathways for miners, the U.S. sector continues to face margin compression. Analysts report that several major U.S.-listed mining firms have redirected portions of their business toward artificial intelligence data centers following last year’s halving, which cut block rewards in half. 

Reduced network activity, rising difficulty, and elevated capital costs have strained mining profitability. According to industry data, operators that could mine Bitcoin profitably at $50,000 now struggle even at $100,000 per coin.

Earlier assessments projected that if the largest miners shifted 20% of their operations toward AI workloads, their annual revenue could rise by an estimated $14 billion (figure cited from prior analysis).

Electricity Prices Poised to Climb as Demand Accelerates

U.S. power markets are also tightening. The Energy Information Administration expects average market electricity prices to rise 8.5% to $51/MWh in 2026, up from $47/MWh in 2025, which was already 23% higher than the prior year. Demand is forecast to increase 2.6% in 2026 following a 2.4% rise in 2025, led by the West South Central region, where data centers and crypto mining facilities continue to expand.

Federal policymakers anticipate increased pressure to accelerate renewable deployment. Projections show renewables could supply 26% of U.S. electricity next year, while nuclear generation could add 18%, bringing carbon-free production to 62% of the nation’s total.