- Kazakhstan allows crypto investments but bans their use as payments.
- All legal crypto activities must occur via AIFC institutions.
- The National Bank oversees asset trade and platform licensing.
Kazakhstan has introduced a regulatory framework permitting cryptocurrency investments through licensed platforms while prohibiting its usage as a payment method.
This regulatory stance impacts the crypto market by limiting domestic transactions and channeling investments towards regulated exchanges, affecting Bitcoin and Ethereum trading within Kazakhstan.
Kazakhstan has decided to permit crypto investments but maintain a prohibition on using cryptocurrencies as a medium for domestic payments. This decision is rooted in recent regulatory frameworks and legal amendments.
President Kassym‑Jomart Tokayev signed the Digital Assets Law on February 6, 2023. This law allows investment and trading via specific licensed platforms while banning their payment use in the domestic market.
“The Law on Digital Assets generally prohibits the issuance and circulation of unsecured digital assets outside the specific jurisdiction of the Astana International Financial Centre (AIFC).” — President Kassym‑Jomart Tokayev
The decision primarily affects industries involved in digital assets and local markets as they must abide by new regulations. The National Bank leads efforts in regulating these investments.
Licensing and regulatory measures are expected to impact the financial market, focusing legal transactions through the Astana International Financial Centre. This restricts unlicensed operations.
Market participants can trade legally only through regulated platforms, impacting foreign investments. The Astana Financial Services Authority licenses these activities to ensure compliance and control.
The law potentially leads to greater scrutiny of crypto-related activities and tighter regulatory control. Historical precedents show Kazakhstan moving towards a heavily regulated crypto economy.
