Kazakhstan officially legalizes cryptocurrency circulation

Key points:

• Cryptocurrencies are now officially permitted for circulation in Kazakhstan.
• Crypto exchanges will be allowed to operate only under licenses issued by the National Bank.
• Stablecoins and the digital tenge have been granted separate legal status.

Amendments to Kazakhstan’s banking and financial legislation have entered into force, formally establishing a legal framework for the circulation of cryptocurrencies and other digital assets for the first time. The laws were signed by the country’s president.

The measures are part of a broader financial sector reform aimed at adapting regulation to the growth of fintech, digital payments and new investment instruments.

Kazakhstan officially simplifies cryptocurrency mining and trading

We analyze what restrictions have been lifted and what is now permitted.

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How crypto regulation will work

The law introduces a separate category of unsecured digital assets, which includes cryptocurrencies. Their circulation will be carried out through specialized exchange organizations, whose activities will be subject to licensing and supervision by the National Bank of Kazakhstan.

The regulator will have the authority to determine which cryptocurrencies are permitted for circulation, as well as to impose limits on transactions and volumes in order to protect investors and maintain financial stability.

What changes for stablecoins and digital assets

The legislation also establishes a legal framework for digital financial assets — tokens backed by money, financial instruments, property rights or commodities. Issuance and circulation of such assets will take place through licensed digital platforms.

Stablecoins are classified as a separate category. Rules governing their issuance, reserve backing and redemption will be set by the National Bank of Kazakhstan.

Digital tenge and fintech

At the legislative level, the digital tenge has been закреплен as a form of the national currency. The regulator will separately define the rules for its use, circulation and integration into the payment infrastructure.

Banks are also allowed to expand their involvement in the fintech sector, including investing in technology companies and creating subsidiaries focused on digital services, artificial intelligence, cybersecurity and electronic payments.

Last November, the National Bank said it plans to create a crypto reserve, which would be funded in part by cryptocurrencies confiscated in criminal cases, as well as potential investments of a portion of state reserves.