Kazakhstan is no longer the place of crypto mining but the state with the higher control over the area of cryptocurrencies. The state encourages the attitude of caution which stimulates innovations but requires strict control.
The country should be aware of the rules to mine, exchange, and investors. Compliance with anti-money laundering (AML), tax and licensing rules can be costly, and their breach can be a big legal risk.
The most important authorities over such crypto activities are the National Bank of Kazakhstan (NBK), the Astana Financial Services Authority (AFSA) within the Astana International Financial Centre (AIFC), the Ministry of Digital Development, Innovation and Aerospace Industry (MDDIAI), and the Financial Monitoring Agency (FMA).
Historical Context
Initially, Kazakhstan was unconcerned with crypto. Following 2019, several massive mining farms relocated to exploit low-cost electricity. In 2021, the country briefly became the world leader in Bitcoin mining power.
This began to change in 2021, when a power shortage and the emergence of unregistered (grey market) mining took place. In 2022, the government added a mining electricity tax. In 2023, a new law (Digital Assets Law No. 193-VII) entered into force officially legalizing mining, but making companies obtain a license and conduct their trading via Astana International Financial Centre (AIFC).
Since 2024, the government has closed 36 unregulated crypto exchanges and confiscated 4,000 mining devices. This is a clear indication of the shift towards the hands-on approach to a more controlled and regulated system.
Regulatory Framework
Primary regulators
NBK is the issuer of the policy and pilots the digital tenge.
AFSA: Regulates exchange custody within AIFC.
FMA: Applies AML/CFT.
MDDIAI: Determines the digital-development strategy.
Licensing
The crypto miners, pools, and service providers must obtain NBK or AFSA licences; by 2023, 84 mining licences and five pools were accredited.
AML / KYC
Under the 2009 AML Law, exchanges are required to verify customers, report suspicious activities and maintain records. A draft dated May 2025 proposes to impose these obligations on stablecoin issues and OTC desks.
Taxation
In Kazakhstan, mining incomes are taxed at a rate of 15% corporate income tax and power tax that varies in accordance to the amount of electricity consumed. Beginning in 2025, the sellers must sell 75% of their mined coins at the exchanges registered in the AIFC. To the individual, any profits gained by selling crypto will be subject to the normal income taxes of the nation.
Token sales
According to Law 193-VII, utility tokens are considered unsecured digital assets and have to be registered through the presentation of a white paper. Security tokens are treated differently- they are governed by securities laws and must comply with the rules of the AFSA in issuing a prospectus.
Kazakhstan Crypto Policies
People can only use crypto to pay within the testing zones, such as the proposed CryptoCity sandbox in Alatau. Beyond these test areas, crypto does not amount to legal money.
Mining is promoted, but it has to be done under strict guidelines. The companies require a license and adhere to a power-sharing structure with 70% of the energy being channeled to the national grid and 30% being used in mining. This arrangement is seeing foreign investors revamping the old power plants.
Two of the largest crypto projects developed by the government include the digital tenge, which will fully launch by the end of 2025, and the new crypto bank that will introduce legal crypto trading and the secure storage of digital assets. Any person engaging in trade without a license and evading taxes may be severely punished such as the seizure of mining equipment, freezing of assets and imposing huge fines.
The Way of Crypto Innovation in the Country
Kazakhstan has two centers of innovation. Since 2018, the AIFC regulatory sandbox has provided start-ups with temporary exemptions to rules, allowing them to experiment with such things as crypto wallets, money transfer applications, and tokenised assets platforms.
The future CryptoCity will be developed with the same strategy but it will be targeted at daily crypto payments. It shall enable shops to accept crypto using point-of-sale systems that are AFSA compliant.
Crypto debit cards are also being tested by big banks, and some of the supermarkets in Nur-Sultan and Almaty already accept test payments made in the digital tenge. The blockchain projects are being financed by government-sponsored tech parks, such as monitoring uranium on the supply chain and computerizing land records. This demonstrates that the government endorses the realistic, transparent applications of the blockchain technology.
Marked Challenges and Problems
The regulation in Kazakhstan outside the AIFC remains rather unclear and inconsistent. Offshore or peer-to-peer platforms are the sites that crypto trading continues to be conducted on to the tune of about 90%. The activity on decentralized exchanges and with privacy coins is hard to control and imposes pressure on the Financial Monitoring Agency (FMA).
The issue of power shortages, particularly at peak seasons, is a subject of discussion in society. The above is because the miners are credited with the creation of jobs and also they are accused of causing blackouts.
The adoption of crypto is hindered by the fact that many ordinary users are wary of crypto due to scam stories they read in the news, despite the government having a favorable attitude towards crypto. The regional differences also exist, some regions are more appealing to industries bringing in miners, other cities can refuse to allow new mining farms as they want to keep local power supply.
The Most Important Regulatory Trends and Prospects
As of May 2025, new regulations are likely to introduce a requirement that every provider of digital assets in Kazakhstan must obtain a single national license. The stablecoins will require an audit of the reserves, and the National Bank of Kazakhstan (NBK) will operate a special digital-asset reserve where any crypto seized by the authorities will be stored.
The proposed legislation will also enable crypto teller machines nationwide and extend VAT (tax) legislation to digital-asset payments.
The following two years promise the introduction of more stringent ID verification, an encouragement of more companies to adopt the digital tenge, and the extension of the CryptoCity template to other tech scenes. The given “regulated, but open” model may significantly affect the surrounding states such as Kyrgyzstan and Uzbekistan, contributing to the establishment of a crypto corridor in Central Asia that will encourage legal mining companies and fintech enterprises but exclude illicit activity.
Conclusion
Kazakhstan is attempting to find a balance between encouraging new technology and strict regulations. The crypto policy is based on three major pillars, namely, legal mining, payment testing in sandboxes, and full licensing of all participants. To investors, exchanges, and miners, the compliance with licensing, tax, and anti-money laundering (AML) regulations is no longer voluntary, but it is a must.
One should not miss the latest news, because the new legislation concerning stablecoins, crypto ATMs, and safe storage (custody) will be introduced soon and will alter the way businesses will have to conduct. Actively monitoring these developments can ensure that companies maintain compliance and utilize Kazakhstan in an otherwise well-regulated environment of crypto.
Frequently Asked Questions (FAQ)
1. Is Bitcoin permitted in Kazakhstan?
Yes. Possession and trading of Bitcoin are legal, with exchanges having to be run under an NBK or AFSA licence and miners having to be registered.
2. Is it possible to use crypto to make purchases?
It is not considered legal tender elsewhere, and within CryptoCity and some pilots, merchants are permitted to accept crypto in payment of everyday goods.
3. What is the taxation of crypto gains?
People are the source of income to personal income; business is subject to corporate tax. There is also a 15% levy and electricity surcharge imposed on the miners.
4. Will I require a licence to operate a crypto exchange?
Yes. Platforms have to obtain an AFSA licence (AIFC-based) or, starting in August 2025, a national digital-asset service-provider licence.
5. Which KYC papers are demanded on the exchanges?
Under FMA rules, users provide national ID or passport, address proof and, beyond specified limits, source-of-funds evidence.
6. Is there any prohibition of exchanges in Kazakhstan?
In 2024, authorities closed 36 unlicensed platforms and can censor sites that do not comply with local license and reporting requirements.
7. Does crypto mining remain profitable even under the new taxes?
Energy is also affordable; licensed farms enjoy 70/30 energy rates, yet taxes and licence charges narrow down the profit margins. The use of efficient rigs reduces expenses.
8. What is the digital tenge?
The NBK is piloting a retail central bank digital currency that would be rolled out to the population in 2025 as part of public procurement, VAT refunds, and wallet payments.
9. Will the stablecoin regulations be issued in Kazakhstan?
A draft bill will require fiat-backed issuers of stablecoins to keep reserves in banks of Kazakhstan and fulfill detailed disclosures of audits after every three months.
10. What will occur when I do not comply with crypto taxes?
Punishments consist of back taxes, fines, possible seizure of mining equipment or wallets and criminal prosecution of major evaders.
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