Kasachstan

Disclaimer: This overview is provided for informational purposes only and does not constitute legal or financial advice. Cryptocurrency regulations change frequently. Consult qualified legal counsel in Kazakhstan or the AIFC before making decisions based on this information.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Kazakhstan’s primary legislation governing digital assets is Law No. 193-VII „On Digital Assets in the Republic of Kazakhstan,“ enacted in February 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 is that the issuance and circulation of unsecured digital assets is prohibited outside the jurisdiction of the Astana International Financial Centre (AIFC). Within the AIFC, crypto activities operate under a separate English common law framework. The November 2025 amendments (Law No. 231-VIII) further updated definitions and explicitly recognized cryptocurrency mining as a permitted entrepreneurial activity for both individuals and companies.

Tax Treatment

Individual income and capital gains from cryptocurrency are subject to a flat 10% income tax rate. Standard corporate income tax of 20% applies to crypto businesses operating outside the AIFC. Mining income is taxed at 15%, and miners face electricity surcharges of 2 KZT per kWh for grid-connected operations (1 KZT/kWh for self-generated or renewable energy). Digital mining is excluded from the simplified tax regime under the Tax Code 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 significant incentive for firms choosing the regulated AIFC route.

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 operate in the AIFC, including 12 digital asset exchanges. The National Bank of Kazakhstan (NBK) oversees domestic regulation and, following January 2026 amendments to the Banking Law, now holds authority to approve which digital assets may be traded on licensed exchanges. The Financial Monitoring Agency serves as the financial intelligence unit responsible for AML/CFT enforcement.

Business Environment

Banking Relationships

Kazakhstan has moved significantly toward integrating traditional banking with cryptocurrency. The government has approved local banks to open accounts for crypto transactions. Several banks now offer crypto-linked payment cards: Bank CenterCredit partnered with ATAIX for cards compatible with Google Pay, Apple Pay, and Samsung Pay that auto-convert crypto to tenge at point of sale. Eurasian Bank and Mastercard launched pilot crypto cards allowing purchases with USDT and stablecoins. Mastercard’s Crypto Credential product also launched in Kazakhstan in January 2025, enabling alias-based crypto transfers through partner exchanges.

The NBK has established a crypto portfolio within its alternative investment portfolio, with allocations potentially scaling to 00-350 million through crypto-focused hedge funds and venture capital vehicles. A separate billion National Crypto Reserve Fund has been planned, funded through seized digital assets and state-controlled mining proceeds.

Licensing Requirements

The AIFC offers several license categories: operating a Digital Asset Trading Facility (exchange), providing custody, dealing in or managing digital asset investments, advising on investments, and digital asset payment services for stablecoin issuers. The application fee for operating an exchange is 0,000, with 5,000 annual renewals. Operators must maintain the higher of 00,000 or sufficient working capital for 12 months of operations. The AFSA’s second-phase Providing Money Services framework, effective January 2026, adds requirements for client protection, cybersecurity policies, incident reporting, IT audits, and strong customer authentication.

Innovation Support

Kazakhstan actively supports crypto innovation through several channels. The AIFC FinTech Lab offers a regulatory sandbox with reduced licensing fees (10% of standard rates). The NBK launched a dedicated digital assets sandbox in 2025 with eight inaugural projects, including stablecoin pilots, tokenization platforms, and crypto OTC exchange solutions, with over 15 additional projects under consideration.

The CryptoCity initiative, announced by President Tokayev in 2025 and located in Alatau, will allow crypto payments for goods, services, and real estate within the zone under real-time AML monitoring. Kazakhstan also introduced Central Asia’s first Bitcoin spot ETF (launched August 2025 on the Astana International Exchange) and the world’s first Solana spot ETF with staking (September 2025). The digital tenge CBDC has processed over 238 billion tenge in transactions across multiple use cases, with mass adoption approved in April 2025.

Market Characteristics

Adoption Patterns

Kazakhstan’s crypto market surged to .8 billion by late 2025, though an estimated 90% of crypto transactions still occur outside the regulated sector. This gap between formal frameworks and actual market activity represents both a challenge and an opportunity. The government’s enforcement response has been significant: over 3,500 unlicensed crypto exchanges have been blocked, and 130 illegal platforms were shut down in 2025 alone, with 6.7 million in cryptocurrency seized. These platforms were linked to cross-border criminal networks spanning multiple countries.

Industry Focus

Kazakhstan is a significant player in cryptocurrency mining, ranking among the top countries globally for Bitcoin hashrate. The country’s mining industry benefits from relatively low electricity costs, though the government has progressively increased regulation through electricity surcharges and licensing requirements. The November 2025 amendments repealed the previous requirement for miners to sell 75% of mined output on AIFC exchanges, giving miners more flexibility. Over 120 unlicensed mining operations have been shut down since 2024.

The AIFC serves as the country’s primary platform for institutional crypto activity, attracting international exchanges like Bybit, which cited its Kazakhstan license as a springboard for broader CIS market expansion.

Regulatory Evolution

Kazakhstan’s regulatory trajectory has been one of progressive formalization. The 2023 Digital Assets Law established the foundation, followed by steady expansion: updated AFSA rulebooks, NBK sandbox launches, crypto ETF approvals, banking law integration, and the CryptoCity pilot zone. The dual-track system allows the AIFC to attract international participants under English common law while the NBK builds out domestic regulation.

Kazakhstan’s 2023 EAG mutual evaluation found its AML/CFT legislation largely compliant with FATF Recommendations, and the country was removed from enhanced monitoring. The IMF’s 2024 Financial Sector Assessment noted limited short-term financial stability risks from crypto but recommended continued work toward comprehensive regulation. Kazakhstan is explicitly positioning itself as Central Asia’s and Eurasia’s crypto hub, with neighboring countries taking more cautious approaches. The country also signed an MOU with China on CBDC cooperation in 2024, extending engagement beyond the CIS and EAEU region.

For Current Information:

• Astana Financial Services Authority (AFSA)
• National Bank of Kazakhstan
• Astana International Financial Centre (AIFC)
• Government of Kazakhstan – Financial Centre
• Adilet Legal Information System (Laws Database)