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Kazakhstan

Retail_Trading_Status

Allowed-Regulated Unknown
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2025-06-26 13:25
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Executive Summary

In Kazakhstan, retail trading of cryptocurrencies is legally permitted but regulated. The primary regulator is the National Bank of Kazakhstan (NBK) and the Astana Financial Services Authority (AFSA) within the Astana International Financial Centre (AIFC). The key legislation is the “Law on Digital Assets in the Republic of Kazakhstan” (Law No. 193-VII), effective April 1, 2023. Cryptocurrency is treated as an asset, not legal tender, and its use as a means of payment is generally prohibited.

Key Pillars

The primary regulator is the National Bank of Kazakhstan (NBK) and the Astana Financial Services Authority (AFSA) within the Astana International Financial Centre (AIFC). The regulatory approach involves licensing exchanges within the AIFC, setting investment limits for retail clients, and enforcing KYC/AML requirements. Licensed exchanges and digital asset service providers are subject to robust Know Your Customer (KYC) and Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) obligations, including customer identification, verification, transaction monitoring, and reporting of suspicious activities to the Financial Monitoring Agency (FMA).

Landmark Laws

  • Law on Digital Assets in the Republic of Kazakhstan (Law No. 193-VII): Effective April 1, 2023, this law provides the primary legal framework for digital assets, aiming to create a transparent and secure environment for cryptocurrency operations.
  • 2009 AML Law: Requires exchanges to verify customers, report suspicious activities, and maintain records.
  • Articles 331 and 332 of the Tax Code: Classifies income from the sale of digital assets by individuals as property income, with a capital gains tax rate of 10% on the difference between the selling and purchase price.

Considerations

  • Cryptocurrencies are legally classified as digital assets, not legal tender.
  • Profits from selling cryptocurrencies are subject to normal income taxes; capital gains tax rate of 10% on the difference between selling and purchase price (Articles 331 and 332 of the Tax Code). Declarations (forms 240 and 270) are required annually.
  • Their use as a direct means of payment for goods and services within Kazakhstan (outside specific sandboxed environments like the proposed CryptoCity) remains prohibited.
  • The AIFC has introduced investment limits to protect retail clients. A retail client can invest up to US$1,000 per month without providing proof of income or assets. For investments exceeding this amount, up to a maximum aggregate of US$100,000, proof of income (10% of annual income) or net worth (5% of net worth) is required, whichever is lesser.

Notes

  • Kazakhstan initially saw a massive influx of mining operations after China's ban in 2021, becoming a world leader in Bitcoin mining but stricter controls were implemented after power shortages and unregistered mining increased, including a mining electricity tax in 2022.
  • The National Bank of Kazakhstan (NBK) is actively preparing a more comprehensive legislative framework to further regulate the circulation of digital assets, including licensing regimes for service providers involved in unsecured cryptocurrencies and defining the legal status of digital financial assets.
  • There are proposals for a single national license for all digital asset providers and specific rules for stablecoins.
  • Lawmakers have also discussed the creation of a "crypto bank" to provide a legal exchange and custody platform.
  • The NBK is developing a Central Bank Digital Currency (CBDC), the digital Tenge, which is expected to be fully launched by the end of 2025.
  • Since 2024, the government has reportedly closed 36 unregulated crypto exchanges.

Detailed Explanation

In Kazakhstan, individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies, but this activity is subject to a specific and evolving regulatory framework. The approach has transitioned from a period of little concern to a more controlled and regulated system, particularly after a surge in crypto mining activities and subsequent energy shortages. The primary legal framework for digital assets came into force on April 1, 2023, with the "Law on Digital Assets in the Republic of Kazakhstan" (Law No. 193-VII). This law, along with subsequent amendments and ongoing regulatory efforts by the National Bank of Kazakhstan (NBK) and the Astana Financial Services Authority (AFSA) within the Astana International Financial Centre (AIFC), aims to create a transparent and secure environment for cryptocurrency operations. Retail trading of cryptocurrencies by individuals is generally channeled through exchanges licensed within the AIFC, including international platforms like Binance and Bybit, as well as local entities. Since 2024, the government has reportedly closed 36 unregulated crypto exchanges. The AIFC has been a key hub for developing and testing cryptocurrency regulations; a pilot project launched in the AIFC allows for the circulation of unsecured digital assets (like Bitcoin and Ether) with certain restrictions.

The AFSA has established rules for Digital Asset Trading Facilities (DATFs) operating within the AIFC, including capital requirements and operational standards. To protect retail clients, the AIFC has introduced investment limits: a retail client can invest up to US$1,000 per month without providing proof of income or assets; for investments exceeding this amount (up to a maximum aggregate of US$100,000), proof of income (10% of annual income) or net worth (5% of net worth) is required, whichever is lesser. Licensed exchanges and digital asset service providers are subject to robust Know Your Customer (KYC) and Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) obligations, including customer identification, verification, transaction monitoring, and reporting of suspicious activities to the Financial Monitoring Agency (FMA). Profits gained by individuals from selling cryptocurrencies are subject to normal income taxes in Kazakhstan. According to Articles 331 and 332 of the Tax Code, income from the sale of digital assets by individuals is classified as property income, with a capital gains tax rate of 10% on the difference between the selling and purchase price; declarations (forms 240 and 270) are required annually.

While buying, selling, and holding cryptocurrencies through licensed channels is permitted, their use as a direct means of payment for goods and services within Kazakhstan (outside specific sandboxed environments like the proposed CryptoCity) remains prohibited; the national currency, the Tenge, is the sole legal tender. The NBK is also developing a Central Bank Digital Currency (CBDC), the digital Tenge, which is expected to be fully launched by the end of 2025. The National Bank of Kazakhstan is actively preparing a more comprehensive legislative framework to further regulate the circulation of digital assets, including licensing regimes for service providers involved in unsecured cryptocurrencies and defining the legal status of digital financial assets. There are proposals for a single national license for all digital asset providers and specific rules for stablecoins; lawmakers have also discussed the creation of a "crypto bank" to provide a legal exchange and custody platform.

Historically, Kazakhstan was initially unconcerned with crypto but saw a massive influx of mining operations after China's ban in 2021, leading to the country briefly becoming a world leader in Bitcoin mining. However, resulting power shortages and the rise of unregistered mining prompted the government to implement stricter controls, including a mining electricity tax in 2022 and the 2023 Digital Assets Law, which legalized licensed mining and mandated trading through AIFC-registered exchanges. The current regulatory stance reflects a balance between fostering innovation in the digital asset space and ensuring financial stability, investor protection, and compliance with AML/CFT standards.

Summary Points

Retail Trading of Cryptocurrencies in Kazakhstan: Regulatory Overview (June 2025)

I. Overall Regulatory Status:

  • Allowed-Regulated: Retail trading of cryptocurrencies is permitted but subject to specific regulations.

II. Key Regulatory Bodies and Their Roles:

  • National Bank of Kazakhstan (NBK):
    • Developing comprehensive legislative framework for digital asset circulation.
    • Preparing licensing regimes for service providers involved in unsecured cryptocurrencies.
    • Defining the legal status of digital financial assets.
    • Developing the Central Bank Digital Currency (CBDC), the digital Tenge.
  • Astana Financial Services Authority (AFSA) within the Astana International Financial Centre (AIFC):
    • Key hub for developing and testing cryptocurrency regulations.
    • Established rules for Digital Asset Trading Facilities (DATFs) operating within the AIFC, including capital requirements and operational standards.
    • Introduced investment limits for retail clients.
  • Financial Monitoring Agency (FMA):
    • Receives reports of suspicious activities from licensed exchanges and digital asset service providers (AML/CFT obligations).

III. Important Legislation and Regulations:

  • "Law on Digital Assets in the Republic of Kazakhstan" (Law No. 193-VII):
    • Came into force on April 1, 2023.
    • Primary legal framework for digital assets.
  • Tax Code (Articles 331 and 332):
    • Governs taxation of profits from cryptocurrency sales.
  • 2009 AML Law:
    • Requires exchanges to verify customers, report suspicious activities, and maintain records.

IV. Requirements for Compliance:

  • Licensed Exchanges:
    • Retail trading generally channeled through exchanges licensed within the AIFC.
    • Examples: Binance, Bybit, ATAIX Eurasia, Biteeu, CaspianEx, BigOne, Delta DA, and Xignal&MT.
  • KYC/AML Obligations:
    • Customer identification and verification.
    • Transaction monitoring.
    • Reporting of suspicious activities to the FMA.
  • Taxation:
    • Profits from selling cryptocurrencies are subject to normal income taxes.
    • Capital gains tax rate of 10% on the difference between selling and purchase price.
    • Annual declarations (forms 240 and 270) required.

V. Notable Restrictions or Limitations:

  • AIFC Retail Investor Limits:
    • Up to US$1,000 per month without proof of income or assets.
    • Up to US$100,000 aggregate with proof of income (10% of annual income) or net worth (5% of net worth), whichever is lesser.
  • Prohibition on Use as Payment:
    • Cryptocurrencies cannot be used as a direct means of payment for goods and services within Kazakhstan (except in specific sandboxed environments).
    • The Tenge is the sole legal tender.
  • Restrictions on Unregulated Platforms:
    • Trading on unregulated foreign platforms carries risks.
    • Government actively working to bring these operations into the regulated sphere.
  • Restricted Operations:
    • Some operations, like P2P trading and certain earning/futures products on specific exchanges, may be restricted for Kazakhstan users.

VI. Recent Developments or Changes:

  • Crackdown on Unregulated Exchanges: The government has reportedly closed 36 unregulated crypto exchanges since 2024.
  • Ongoing Regulatory Development: The NBK is preparing a more comprehensive legislative framework.
  • Proposed Crypto Bank: Discussions about creating a "crypto bank" to provide a legal exchange and custody platform.
  • CBDC Development: The NBK is developing a Central Bank Digital Currency (CBDC), the digital Tenge, expected to be fully launched by the end of 2025.
  • Tightening Crypto Controls: Kazakhstan is tightening cryptocurrency regulation following capital outflow.

Full Analysis Report

Report on Retail Trading Status of Cryptocurrencies in Kazakhstan

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

Retail_Trading_Status: Allowed-Regulated

1. Most Accurate Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Individual citizens and residents in Kazakhstan are legally permitted to buy, sell, and hold cryptocurrencies, but this activity is subject to a specific and evolving regulatory framework. The approach has transitioned from a period of little concern to a more controlled and regulated system, particularly after a surge in crypto mining activities and subsequent energy shortages highlighted the need for oversight.

The primary legal framework for digital assets came into force on April 1, 2023, with the "Law on Digital Assets in the Republic of Kazakhstan" (Law No. 193-VII). This law, along with subsequent amendments and ongoing regulatory efforts by the National Bank of Kazakhstan (NBK) and the Astana Financial Services Authority (AFSA) within the Astana International Financial Centre (AIFC), aims to create a transparent and secure environment for cryptocurrency operations.

Key Aspects of the Regulatory Environment:

  • Licensed Exchanges: Retail trading of cryptocurrencies by individuals is generally channeled through exchanges licensed within the AIFC. As of early 2024, several exchanges were officially licensed to operate, including international platforms like Binance and Bybit, as well as local entities. Trading on unregulated foreign platforms carries risks, and the government is actively working to bring these operations into the regulated sphere. Since 2024, the government has reportedly closed 36 unregulated crypto exchanges.
  • AIFC Pilot Project and Rules: The AIFC has been a key hub for developing and testing cryptocurrency regulations. A pilot project launched in the AIFC allows for the circulation of unsecured digital assets (like Bitcoin and Ether) with certain restrictions. The AFSA has established rules for Digital Asset Trading Facilities (DATFs) operating within the AIFC, including capital requirements and operational standards.
  • Restrictions for Retail Investors: To protect retail clients, the AIFC has introduced investment limits. A retail client can invest up to US$1,000 per month without providing proof of income or assets. For investments exceeding this amount, up to a maximum aggregate of US$100,000, proof of income (10% of annual income) or net worth (5% of net worth) is required, whichever is lesser. Some operations, like P2P trading and certain earning/futures products on specific exchanges, may be restricted for Kazakhstan users.
  • KYC/AML Requirements: Licensed exchanges and digital asset service providers are subject to robust Know Your Customer (KYC) and Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) obligations. These include customer identification, verification, transaction monitoring, and reporting of suspicious activities to the Financial Monitoring Agency (FMA).
  • Taxation: Profits gained by individuals from selling cryptocurrencies are subject to normal income taxes in Kazakhstan. According to Articles 331 and 332 of the Tax Code, income from the sale of digital assets by individuals is classified as property income, with a capital gains tax rate of 10% on the difference between the selling and purchase price. Declarations (forms 240 and 270) are required annually.
  • Prohibition on Use as Payment: While buying, selling, and holding cryptocurrencies through licensed channels is permitted, their use as a direct means of payment for goods and services within Kazakhstan (outside specific sandboxed environments like the proposed CryptoCity) remains prohibited. The national currency, the Tenge, is the sole legal tender. The NBK is also developing a Central Bank Digital Currency (CBDC), the digital Tenge, which is expected to be fully launched by the end of 2025.
  • Ongoing Regulatory Developments: The regulatory landscape is dynamic. The National Bank of Kazakhstan is actively preparing a more comprehensive legislative framework to further regulate the circulation of digital assets, including licensing regimes for service providers involved in unsecured cryptocurrencies and defining the legal status of digital financial assets. There are proposals for a single national license for all digital asset providers and specific rules for stablecoins. Lawmakers have also discussed the creation of a "crypto bank" to provide a legal exchange and custody platform.

Historically, Kazakhstan was initially unconcerned with crypto but saw a massive influx of mining operations after China's ban in 2021. This led to the country briefly becoming a world leader in Bitcoin mining. However, resulting power shortages and the rise of unregistered mining prompted the government to implement stricter controls, including a mining electricity tax in 2022 and the 2023 Digital Assets Law, which legalized licensed mining and mandated trading through AIFC-registered exchanges.

The current regulatory stance reflects a balance between fostering innovation in the digital asset space and ensuring financial stability, investor protection, and compliance with AML/CFT standards.

3. Specific, Relevant Text Excerpts:

  • On the legality of retail trading through licensed exchanges: "As of today, trading in cryptocurrencies and mining are permitted after obtaining an appropriate licence. Citizens can register on licensed exchanges without any complications or restrictions." "In Kazakhstan, it is legal to trade cryptocurrencies only on licensed AIFC exchanges: Binance, Bybit, ATAIX Eurasia, Biteeu, CaspianEx, BigOne, Delta DA, and Xignal&MT."
  • On the role of the AIFC: "Contrary to the ban on the issue and circulation of unsecured digital assets in Kazakhstan, the legislation provides the possibility of their issue and circulation through the Astana International Financial Center (AIFC) as an exception to the general rule. This will allow to legally conduct cryptocurrency activities on the territory of AIFC with the license “Operating a Digital Asset Trading Facility”."
  • On KYC/AML requirements: "Under the 2009 AML Law, exchanges are required to verify customers, report suspicious activities and maintain records." "Companies that have obtained a license for cryptocurrency in Kazakhstan will be able to legally provide services of purchase, sale, and exchange of cryptocurrencies... [and] to conduct customer identification, comply with anti-money laundering and anti-terrorist financing measures, etc., by Law No. 193-VII of the Law “On Digital Assets in the Republic of Kazakhstan”."
  • On restrictions for retail investors in the AIFC: "A retail client can now only invest up to US$1,000 per month without providing proof of income or assets or up to either (i) 10 percent of the annual income or (ii) 5 percent of the net worth of such retail client totalling to a maximum aggregate of US$100,000 provided that income or assets are confirmed, whichever is lesser."
  • On the prohibition of cryptocurrency as a means of payment: "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." "At the same time, the use of cryptocurrency as a means of payment within Kazakhstan remains prohibited."
  • On taxation of individual crypto profits: "To the individual, any profits gained by selling crypto will be subject to the normal income taxes of the nation." "Taxes: First, let's determine that according to Articles 331 and 332 of the Tax Code, income from the sale of digital assets by individuals is classified as property income. 1) Income is considered the difference between the selling price of the asset and its purchase price. 2) The capital gains tax rate is 10%."
  • On ongoing regulatory developments by the National Bank: "The National Bank of Kazakhstan is preparing a comprehensive legislative framework to regulate the circulation of digital assets... The proposed regulatory framework comprises two main components. The first defines the legal status and procedures for issuing and using digital financial assets. The second introduces a licensing regime for service providers involved in the exchange of unsecured cryptocurrencies." "The National Bank of the Republic of Kazakhstan has announced the launch of a new regulatory framework for crypto assets, under which citizens will officially be allowed to purchase cryptocurrency through licensed exchange service providers".

4. Direct, Accessible URL Links to Sources:

  1. https://coinfomania.com/cryptocurrency-regulations-in-kazakhstan/ (Note: While a secondary source, it consolidates information effectively. Primary sources for specific laws would be government legislative portals.)
  2. https://gofaizen-sherle.com/crypto-license-in-kazakhstan
  3. https://www.elibrary.imf.org/view/journals/002/2024/104/article-A001-en.xml
  4. https://astanatimes.com/2024/05/kazakhstan-to-tighten-cryptocurrency-regulation-following-15-billion-capital-outflow/
  5. https://ainvest.com/news/kazakhstan-tightens-crypto-controls-closes-36-unregulated-exchanges-2024-06-24/
  6. https://www.globallegalinsights.com/practice-areas/fintech-laws-and-regulations/kazakhstan
  7. https://freemanlaw.com/kazakhstan-and-cryptocurrency/
  8. https://paygate.kz/blog/kak-polzovatsya-kriptovalyutoj-v-kazahstane (Content is in Russian, may require translation)
  9. https://thepaypers.com/cryptocurrencies/kazakhstan-national-bank-to-regulate-the-crypto-sector--1268610
  10. https://en.trend.az/casia/kazakhstan/3900998.html
  11. https://afsa.kz/fsa-introduces-limits-for-retail-clients-on-buying-and-trading-of-digital-assets-in-aifc-authorised-digital-asset-trading-facilities/
  12. https://www.binance.com/en/square/post/368137 (User-generated content on a reputable platform, cross-referenced with other sources for tax information)
  13. https://dig.watch/updates/kazakhstan-proposes-the-creation-of-a-crypto-bank
  14. https://www.morganlewis.com/pubs/2023/02/kazakhstan-introduces-new-regulation-of-digital-assets (Provides detail on the 2023 laws)
  15. https://chambers.com/content/item/10863
  16. https://interfax.com/newsroom/top-stories/101739/
  17. https://en.inform.kz/news/national-bank-to-start-regulating-cryptocurrency-in-kazakhstan-1237ea/
  18. https://ggwprixe.com/en/blog/kriptovalyuta-v-kazahstane-chto-razresheno-a-chto-net/
  19. https://unicaselaw.com/legislative-trends-and-innovations-in-digital-assets/

(Note: Some URLs may have changed or become outdated since the last knowledge update. Prioritize accessing information from official government and regulatory body websites where possible.)

Web Sources (19)

Sources discovered via web search grounding

Search queries used (8)
  • Kazakhstan cryptocurrency regulation retail trading status
  • Kazakhstan crypto trading laws for individuals
  • Kazakhstan AML KYC cryptocurrency exchanges
  • National Bank of Kazakhstan cryptocurrency policy
  • Astana Financial Services Authority (AFSA) cryptocurrency rules for retail investors
  • Kazakhstan digital asset trading regulations
  • Are individuals in Kazakhstan allowed to buy and sell cryptocurrency?
  • Kazakhstan cryptocurrency licensing requirements for exchanges serving retail clients
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