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Crypto Miners Rejoice: Kazakhstan Removes AIFC Limits, Legalizes National Operations
Kazakhstan has made a significant move in the cryptocurrency mining space by removing the limits imposed on the Astana International Financial Center (AIFC) and legalizing mining operations nationwide. This update is expected to have a significant impact on miners’ ability to operate freely, while also paving the way for clearer regulations and better oversight.
Prior to this change, the AIFC was the sole legal zone for licensed mining and exchange activities. However, with the new amendments taking effect, these restrictions are removed, enabling regulated crypto activity across the entire country. This shift is a major win for miners who had faced significant challenges in operating legally within the borders of Kazakhstan.
It’s worth noting that this decision comes amidst growing concerns over the strain that cryptocurrency mining has put on the country’s power grid. Following China’s 2020 ban, many miners relocated to Kazakhstan, putting pressure on the local energy infrastructure. In response to these issues, there have been proposals to limit new mining facilities’ energy usage and cap national applications.
The removal of restrictions also opens up new opportunities for the sector to grow, with President Kassym-Jomart Tokayev signing fresh amendments to the nation’s artificial intelligence and digitalization laws. This move is seen as a key step towards bringing clarity to existing regulations and introducing formal oversight over the circulation of unsecured digital assets across the country.
The new regulations also address issues related to data handling, product labeling, and information security, prioritizing citizens’ protection. Key changes include tightening data-handling norms, ensuring consent must be time-bound, valid only for its intended purpose, and permitting individuals to revoke their consent at any moment. Additionally, retailers will now need to document transactions using identification-linked cash registers, further improving oversight.
The most significant change is the reclassification of cryptocurrency mining, which will no longer be treated as digital asset turnover. This shift allows individuals and businesses to mine legally without earlier restrictions. Moreover, miners are no longer required to sell their majority of coins via AIFC exchanges, providing them with greater financial flexibility.
Furthermore, Kazakhstan’s National Bank is exploring the idea of a state-backed crypto reserve, indicating growing government openness to digital finance.
Source: ambcrypto.com
