Crypto Journalist
Anas Hassan
Crypto Journalist
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Kazakhstan’s Head of State, Kassym-Jomart Tokayev, has enacted legislation concerning Banks and Banking Activities in the Republic of Kazakhstan, establishing a comprehensive regulatory framework for digital assets.
The law grants the nation’s central bank authority to determine which cryptocurrencies may be traded on regulated exchanges.
The legislation, detailed in a recent official document, encompasses over five distinct amendments and additions to various legislative acts addressing financial market regulation, communications, and bankruptcy procedures.
The law also introduces comprehensive regulatory frameworks for digital financial assets, while tightening controls on “unsecured” cryptocurrencies, such as Bitcoin and Ethereum.
Kazakhstan Introduces a Three-Tier Digital Asset Framework
A significant development is the authorization and regulatory introduction of digital financial assets as a new asset class in Kazakhstan.
The new regulatory structure categorizes digital financial assets into three distinct types, each subject to different oversight mechanisms.
Stablecoins backed by fiat currency will fall under the National Bank’s requirements governing their issuance, circulation, and redemption.
Digital financial assets backed by financial instruments, property rights, goods, or other tangible assets represent the second category, while financial instruments issued electronically on digital platforms comprise the third tier.
Digital platform operators will function as newly licensed financial market entities authorized to issue these assets, subject to traditional financial instrument requirements, including risk management protocols and investor protection standards.
Additionally, the law addresses another digital asset category, “unsecured digital assets,” referring to cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
The legislation provides for the establishment of cryptocurrency exchange organizations, which will be licensed and supervised by the National Bank.
To safeguard investors, the National Bank will establish a list of approved cryptocurrencies for circulation, along with operational limits and restrictions on crypto exchanges.
For anti-money laundering and counter-terrorist financing purposes, crypto exchanges and digital asset market infrastructure participants are classified among entities subject to financial monitoring.
Aggressive Enforcement Against Illegal Operations
Kazakhstan’s regulatory push follows months of intensive enforcement action against unauthorized crypto activity.
Authorities shut down 130 illegal crypto exchanges in October 2024, seizing virtual assets worth $16.7 million suspected of laundering criminal proceeds.
Only platforms licensed by the Astana Financial Services Authority and integrated with local banks can legally operate under the Law on Digital Assets.
The crackdown extended beyond exchanges to 81 shadow cash-out groups discovered with a combined turnover reaching 24 billion KZT ($43 million) in 2024.
Deputy Chairman of the Financial Monitoring Agency, Kairat Bizhanov, identified ATMs as a critical vulnerability, noting that cash withdrawals totaled 13.2 trillion KZT ($24.1 billion), 1 trillion more than the previous year.
Anonymous transactions using nominee-owned bank cards enable criminals, including cyber fraudsters and drug traffickers, to operate without sender or recipient identification.
Throughout 2023 and 2024, the Financial Monitoring Agency blocked over 3,500 illegal online crypto exchanges in coordination with the National Security Committee and the Ministry of Culture and Information.
In 2024 alone, regulators closed 36 illegal exchangers handling a total of 60 billion tenge ($112 million) in turnover, while Kazakhstan officially blocked Coinbase’s website for violating digital asset regulations.
Kazakhstan Greenlights Crypto Banks and National Reserve Fund
Despite strict enforcement measures, Kazakhstan is simultaneously exploring progressive digital asset initiatives.
Prime Minister Olzhas Bektenov announced plans to launch crypto banks as part of a broader strategy to build a sustainable, regulated ecosystem.
These institutions would offer digital asset exchange services, secure storage solutions, and transaction processing through infrastructure providers,s including digital asset platforms, custodians, brokers, and dealers.
Kazakhstan also intends to establish a national cryptocurrency reserve fund valued between $500 million and $1 billion by early 2026, according to Bloomberg reporting.
The initiative represents one of Central Asia’s most ambitious moves to integrate digital assets into state-managed investment portfolios, though authorities have indicated the fund will avoid direct exposure to volatile cryptocurrencies like Bitcoin and adopt a cautious investment approach.
