Crypto Overview in Kazakhstan

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Kazakhstan’s primary legislation governing digital assets is Law No. 193-VII “On Digital Assets in the Republic of Kazakhstan,” signed on February 6, 2023 and effective from April 1, 2023. Under this law, cryptocurrencies are classified as “unsecured digital assets,” a subcategory of digital assets that are not backed by financial instruments or physical property. They are treated as property, not as legal tender or securities.

A key restriction in the original framework was that the issuance and circulation of unsecured digital assets was prohibited outside the jurisdiction of the Astana International Financial Centre (AIFC), a special economic zone governed by English common law. Within the AIFC, crypto activities operate under a dedicated regulatory framework administered by the AFSA. Two significant legislative updates followed: Law No. 231-VIII (November 2025), part of the broader digitalisation and artificial intelligence legislative package, updated core definitions and explicitly recognized cryptocurrency mining as a permitted entrepreneurial activity for both individuals and legal entities. Then, in January 2026, amendments to the Law on Banks and Banking Activities introduced a new class of regulated instruments called Digital Financial Assets (DFAs) covering stablecoins, tokenized real assets, and digitally issued financial instruments, while expanding the NBK’s supervisory authority to license nationwide crypto exchange organisations and set limits on their operations.

Regulatory Oversight

Kazakhstan operates a dual regulatory structure. The Astana Financial Services Authority (AFSA) licenses and supervises all crypto-related activities within the AIFC; as of late 2025, 29 licensed Digital Asset Service Providers (DASPs) operated there, including 12 exchanges. The National Bank of Kazakhstan (NBK) oversees domestic regulation and, following the January 2026 amendments, holds authority to license crypto exchange organisations outside the AIFC, determine tradeable assets, and set operational limits. The Agency for Regulation and Development of the Financial Market (ARDFM) establishes requirements for Digital Financial Asset issuance and circulation. The Agency for Financial Monitoring (AFM) is the country’s financial intelligence unit for AML/CFT enforcement.

Tax Treatment

Individual income and capital gains from cryptocurrency are subject to a flat 10% personal income tax rate. Standard corporate income tax of 20% applies to crypto businesses operating outside the AIFC. Mining income is taxed at 15%. Miners using grid electricity pay a surcharge of 2 KZT per kWh; those using self-generated or renewable energy pay 1 KZT per kWh. Digital mining was excluded from the simplified tax regime under Tax Code amendments effective January 2026. Turnover from the sale of digital assets is exempt from VAT, though related services may still be subject to it. Companies licensed within the AIFC benefit from exemptions on income and property taxes until January 1, 2066, a major incentive for firms choosing the regulated AIFC route.

Business Environment

Banking Relationships

Kazakhstan has integrated traditional banking with cryptocurrency. Banks are approved to open accounts for crypto transactions. Bank CenterCredit partnered with ATAIX for cards that auto-convert crypto to tenge at point of sale; Eurasian Bank and Mastercard piloted cards allowing purchases with USDT and stablecoins; Mastercard’s Crypto Credential launched in Kazakhstan in January 2025 for alias-based crypto transfers. The NBK formalized crypto card integration at a June 2025 stakeholder meeting, defining crypto cards as instruments linked to AIFC-licensed exchange wallets and converting balances to tenge at the point of payment. The state-backed Alem Crypto Fund was established within the AIFC, managed by Qazaqstan Venture Group under the Ministry of Artificial Intelligence and Digital Development, as Kazakhstan’s first national cryptocurrency reserve vehicle.

Innovation Support

Kazakhstan supports crypto innovation through several mechanisms. The AIFC FinTech Lab regulatory sandbox offers reduced licensing fees (10% of standard rates) for qualifying projects. On June 30, 2025, the NBK launched a dedicated regulatory sandbox; eight inaugural projects were admitted, covering stablecoin pilots, tokenisation platforms, and crypto OTC solutions. In June 2025, Kazakhstan established the Solana Economic Zone Kazakhstan, the first Web3-focused economic zone in Central Asia, backed by the Solana Foundation and offering pilot programmes in tokenized capital markets.

President Kassym-Jomart Tokayev announced the CryptoCity project in Alatau at the 2025 Astana International Forum: a pilot zone where residents can use cryptocurrency for everyday payments including groceries, transport, and real estate under real-time AML monitoring. The digital tenge CBDC has processed over 238 billion KZT in transactions, with mass adoption approved in April 2025. In August 2025, Central Asia’s first spot Bitcoin ETF was launched on the Astana International Exchange (AIX) by Fonte Capital (ticker: BETF, BitGo custodian). In September 2025, Fonte Capital launched a spot Solana ETF with staking on the AIX (ticker: SETF), one of the first regulated retail vehicles of its kind globally. Total capital raised through the AIFC exceeded $6 billion in 2025.

Crypto License in Kazakhstan

Kazakhstan offers two distinct licensing pathways for crypto businesses. Firms seeking to operate within the AIFC apply to the Astana Financial Services Authority (AFSA) and benefit from the AIFC’s English common law framework and long-term tax incentives. Firms targeting the domestic market outside the AIFC must apply to the National Bank of Kazakhstan (NBK), which received formal licensing authority under the January 2026 banking-law amendments. The two tracks carry different requirements, applicable law, and supervisory bodies.

Licensing Requirements

Within the AIFC, the AFSA issues licences to Digital Asset Service Providers under the AIFC Rules on Digital Asset Activities, substantially updated effective January 1, 2026 following a public consultation held from July to September 2025 and aligning with all 10 of IOSCO’s priority recommendations, as confirmed by an IOSCO thematic review in October 2025. AFSA licence categories include: operating a Digital Asset Trading Facility (exchange); providing custody services; dealing in or managing digital asset investments; advising on digital asset investments; and providing Digital Asset Payment Services (for stablecoin issuers). The minimum capital requirement for a Digital Asset Trading Facility is $200,000 USD, and applicants must maintain working capital for at least 12 months. A physical office within AIFC premises is required along with at least two full-time local employees serving as AML officer and compliance officer. The 2026 amendments added requirements for client protection, cybersecurity policies, incident reporting, and strong customer authentication.

For crypto mining, a national licence issued by the Ministry of Digital Technologies via the elicense.kz portal is required. The licence fee for operators with their own data centre is 2,000 Monthly Calculation Indices (approximately 7,384,000 KZT). Miners must install automatic electricity metering systems, purchase electricity within set quotas, and meet environmental and energy efficiency standards. Mining pools require separate accreditation, and hardware and software systems must be registered in the special state registry.

Authorized Activities

AFSA-licensed entities may operate spot exchanges, provide custody, deal or manage digital asset investments, offer investment advice, and issue or manage stablecoins under the Digital Asset Payment Services category. Binance Kazakhstan was the first digital-asset platform to obtain consent for a full regulatory licence from AFSA. Bybit and Bitfinex also hold AFSA licences. As of late 2025, 12 licensed digital asset exchanges operated within the AIFC. The NBK-regulated track, being newly established under the January 2026 amendments, is expected to address exchange operations in the domestic market outside the AIFC, subject to NBK-approved asset lists and trading limits. Activities not covered by any licence, including trading on unlicensed platforms or mining without registration, remain subject to enforcement action.

Application Process and Timeline

AFSA applications begin with the submission of a detailed application file, followed by In-Principle Approval (IPA), a preliminary licence consent that clarifies conditions before formal issuance. The full AFSA licensing process typically takes 6 to 9 months. Common failure points include underestimating documentation requirements, insufficient capital planning, and gaps in AML/CFT policies. Mining licences issued by the Ministry of Digital Technologies via elicense.kz follow a separate administrative process. All DASPs in the AIFC must comply with the AFSA-AFM joint AML/CFT framework, appoint a dedicated Money Laundering Reporting Officer (MLRO), report suspicious transactions to the AFM, conduct regular independent AML audits, and maintain comprehensive compliance records.

Market Characteristics

Adoption Patterns

Kazakhstan’s regulated crypto market reached approximately $6.8 billion in digital asset transaction volumes across AIFC-licensed platforms in Q1 to Q3 2025, a 36% increase over 2024. Despite this growth, an estimated 90% of all crypto transactions in the country still occur outside the regulated sector, and only about 5% of Kazakh crypto investors use licensed exchanges, according to industry estimates. This gap between formal frameworks and actual market activity represents both a regulatory challenge and an opportunity for continued formalisation.

Enforcement has been substantial: 36 unlicensed exchanges were shut down in 2024 (combined turnover ~60 billion KZT); in 2025, 130 platforms were closed and $16.7 million in cryptocurrency seized. A September 2025 operation froze 9.7 million USDT, with 3.2 million USDT confiscated. The AFSA has publicly warned that global recognition does not constitute authorisation to operate in Kazakhstan, flagging HTX, Bitget, OKX, and MEXC as unlicensed.

Industry Focus

Kazakhstan ranks among the leading countries globally for Bitcoin mining hashrate, benefiting from relatively low electricity costs and available energy infrastructure. The mining sector has been progressively regulated since 2023. A major policy shift came with Law No. 231-VIII in November 2025, which repealed the requirement for miners to sell 75% of mined output on AIFC-licensed exchanges, giving operators greater flexibility. Over 120 unlicensed mining operations have been shut down since 2024. The AIFC continues to serve as the primary platform for institutional crypto activity in the country, drawing international exchanges and enabling the launch of regulated products including the region’s first spot Bitcoin ETF and an early regulated spot Solana staking ETF.

Regulatory Evolution

Kazakhstan’s regulatory trajectory has been one of steady formalisation. The April 2023 Digital Assets Law established the foundation, followed by the November 2025 amendments under Law No. 231-VIII, the January 2026 banking-law overhaul, and updated AFSA rulebooks effective January 2026. The dual-track structure, with the AIFC attracting international participants under English common law and the NBK building out domestic regulation, gives the country flexibility across both markets.

The 2023 EAG Mutual Evaluation (assessment mission September 2022) rated Kazakhstan Compliant for 5 and Largely Compliant for 28 of the 40 FATF Recommendations, and Substantially Effective for 7 of 11 effectiveness outcomes; Kazakhstan is not on the FATF grey list. The AFSA and AFM have signed a formal AML/CFT cooperation memorandum. The IMF’s 2024 Financial Sector Assessment noted limited short-term financial stability risks from crypto and recommended continued work toward comprehensive regulation. Kazakhstan is positioning itself as Eurasia’s leading crypto hub, with neighbouring countries taking more cautious approaches.