Kazakhstan
Retail_Trading_Status
- Analysis ID
- #699
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- Created
- 2025-12-12 04:41
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- 26033724...
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Executive Summary
Retail cryptocurrency trading is legal and heavily regulated in Kazakhstan, primarily operating through the Astana International Financial Centre (AIFC) and recently expanded to the national jurisdiction. As of late 2025, the country employs a dual regulatory framework where the Astana Financial Services Authority (AFSA) licenses exchanges within the AIFC, while the National Bank of Kazakhstan oversees newly authorized crypto-exchange service providers in the wider economy. Retail investors face specific investment limits based on income verification, and miners are subject to mandatory requirements to sell a portion of their yield on local licensed exchanges.
Key Pillars
Astana Financial Services Authority (AFSA) - Primary regulator for the AIFC special economic zone
National Bank of Kazakhstan - Regulator for crypto-exchange operators outside the AIFC (as of late 2025)
Agency for Regulation and Development of the Financial Market (ARDFM) - Oversees financial stability and consumer protection aspects
Ministry of Digital Development, Innovation, and Aerospace Industry - Competent authority for digital mining regulation
Mandatory Licensing - All exchanges must hold a 'Digital Asset Trading Facility' license (AIFC) or equivalent national license
Landmark Laws
Law on Digital Assets in the Republic of Kazakhstan (No. 193-VII ZRK) - Enacted: 2023-04-01
- The foundational framework defining digital assets, regulating mining activities, and initially restricting unsecured digital asset circulation to the AIFC. It mandated miners to sell a percentage of crypto on local exchanges.
- Source
Amendments on Artificial Intelligence and Digitalization (Ending AIFC Monopoly) - Enacted: 2025-11-18
- Recent legislation signed by President Tokayev permitting crypto mining and trading outside the AIFC, effectively ending the AIFC's exclusive control and creating a unified national regulatory regime under National Bank oversight.
AIFC Digital Asset Activities Rules (AIFC Rules No. AFSA-Q-OA-2023-0003) - Enacted: 2024-01-01
- Detailed rules for exchanges operating within the AIFC, including capital requirements, custody rules, and retail investor limits.
- Source
Considerations
Retail Investment Limits: Unverified retail investors are capped at ~$1,000/month. Verified investors can trade up to $100,000/year (capped at 10% of annual income or 5% of net worth).
Mining Restrictions: Miners must sell 75% of their mined crypto on licensed local exchanges (effective 2025).
Taxation: Individuals must report capital gains on Form 240; gains are taxed at 10%.
Fiat Channels: Bank transfers to crypto exchanges are only permitted for licensed entities; 'grey' P2P is actively discouraged/blocked.
Dual Jurisdiction: Distinct rules apply depending on whether the entity is registered in the AIFC (English common law framework) or mainland Kazakhstan (Civil law).
Notes
The analysis reflects the regulatory state as of December 2025. The distinction between 'Secured' (tokens/securities) and 'Unsecured' (cryptocurrencies like BTC) digital assets is critical in Kazakh law. Most retail trading rules apply specifically to 'Unsecured Digital Assets'.
Remaining Uncertainties
- Specific licensing requirements for the new 'national' crypto-exchange service providers under the National Bank are not yet fully detailed in public English documentation.
- The practical timeline for the full implementation of the November 2025 amendments ending the AIFC monopoly remains to be seen.
Detailed Explanation
Detailed Explanation
Cryptocurrency retail trading is allowed and heavily regulated in Kazakhstan as of December 2025. The country operates under a dual regulatory framework, initially established by the foundational Law on Digital Assets in the Republic of Kazakhstan (No. 193-VII ZRK), enacted on April 1, 2023. This law defined digital assets, regulated mining, and initially restricted the circulation of unsecured digital assets (like Bitcoin) to the Astana International Financial Centre (AIFC), a special economic zone. The Astana Financial Services Authority (AFSA) serves as the primary regulator within the AIFC, issuing 'Digital Asset Trading Facility' licenses under its detailed AIFC Digital Asset Activities Rules (AFSA-Q-OA-2023-0003), which came into force on January 1, 2024. This framework was significantly expanded by the Amendments on Artificial Intelligence and Digitalization, enacted on November 18, 2025, which ended the AIFC's monopoly by permitting crypto mining and trading in the wider national economy under the oversight of the National Bank of Kazakhstan. Consequently, crypto-exchange service providers outside the AIFC now require equivalent national licensing, creating a more unified national regime. The Agency for Regulation and Development of the Financial Market (ARDFM) oversees broader financial stability and consumer protection, while the Ministry of Digital Development, Innovation, and Aerospace Industry regulates digital mining activities. Key compliance requirements include mandatory licensing for all exchanges, with retail investors facing specific investment limits based on income verification. Unverified investors are capped at approximately $1,000 per month, while verified investors can trade up to $100,000 annually, subject to a cap of 10% of their annual income or 5% of their net worth. Furthermore, cryptocurrency miners are subject to a mandatory requirement to sell 75% of their mined yield on licensed local exchanges, a rule effective from 2025. Individuals must report capital gains on Form 240, with gains taxed at a rate of 10%, and bank transfers to crypto exchanges are only permitted for licensed entities, with 'grey' peer-to-peer transactions actively discouraged or blocked. The regulatory landscape distinguishes between entities operating under the AIFC's English common law framework and those in mainland Kazakhstan's civil law jurisdiction, with most retail trading rules applying specifically to unsecured digital assets.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated in Kazakhstan.
* Operates under a dual regulatory framework involving the Astana International Financial Centre (AIFC) and the national jurisdiction.
* The analysis reflects the regulatory state as of December 2025.
II. Key Regulatory Bodies
* Astana Financial Services Authority (AFSA): Primary regulator for the AIFC special economic zone; licenses exchanges within this zone.
* National Bank of Kazakhstan: Regulator for crypto-exchange operators outside the AIFC as of late 2025.
* Agency for Regulation and Development of the Financial Market (ARDFM): Oversees financial stability and consumer protection aspects.
* Ministry of Digital Development, Innovation, and Aerospace Industry: Competent authority for digital mining regulation.
III. Important Legislation
* Law on Digital Assets in the Republic of Kazakhstan (No. 193-VII ZRK): Enacted 2023-04-01. Foundational framework defining digital assets, regulating mining, and initially restricting unsecured digital asset circulation to the AIFC. Mandated miners to sell a percentage of crypto on local exchanges.
* Amendments on Artificial Intelligence and Digitalization (Ending AIFC Monopoly): Enacted 2025-11-18. Permitted crypto mining and trading outside the AIFC, ending its exclusive control and creating a unified national regulatory regime under National Bank oversight.
* AIFC Digital Asset Activities Rules (AIFC Rules No. AFSA-Q-OA-2023-0003): Enacted 2024-01-01. Detailed rules for AIFC exchanges, including capital requirements, custody rules, and retail investor limits.
IV. Compliance Requirements
* Mandatory Licensing: All exchanges must hold a 'Digital Asset Trading Facility' license (within AIFC) or an equivalent national license.
* Retail Investor Verification & Limits:
* Unverified retail investors are capped at ~$1,000/month.
* Verified investors can trade up to $100,000/year, capped at 10% of annual income or 5% of net worth.
* Taxation: Individuals must report capital gains on Form 240; gains are taxed at 10%.
* Fiat Channels: Bank transfers to crypto exchanges are only permitted for licensed entities.
V. Notable Restrictions or Limitations
* Mining Restrictions: Miners must sell 75% of their mined crypto on licensed local exchanges (effective 2025).
* P2P Trading: 'Grey' peer-to-peer (P2P) transactions are actively discouraged/blocked.
* Asset Distinction: Most retail trading rules apply specifically to Unsecured Digital Assets (e.g., cryptocurrencies like BTC), as opposed to 'Secured' tokens/securities.
VI. Recent Developments or Notes
* The 2025 amendments ended the AIFC's monopoly, expanding regulated crypto activities to the national economy.
* A dual jurisdiction exists: distinct rules apply for entities registered in the AIFC (English common law framework) versus mainland Kazakhstan (Civil law).
Full Analysis Report
Full Analysis Report
Kazakhstan has established itself as one of the most structured cryptocurrency jurisdictions in Central Asia, operating under a 'Allowed-Regulated' status. The regulatory environment is characterized by a unique dual-jurisdiction system. For several years, the Astana International Financial Centre (AIFC) served as the sole legal sandbox and operational zone for cryptocurrency trading, operating under English Common Law principles and regulated by the Astana Financial Services Authority (AFSA). Major global exchanges, including Binance and Bybit, obtained licenses here to offer services to Kazakhstani residents.
The framework significantly evolved with the 'Law on Digital Assets' (effective April 2023), which formalized the definitions of secured and unsecured digital assets. This law initially prohibited the circulation of unsecured digital assets (cryptocurrencies like Bitcoin) outside the AIFC, effectively creating a monopoly for the financial center. However, in November 2025, President Kassym-Jomart Tokayev signed pivotal amendments that ended this monopoly, allowing licensed entities to offer crypto trading services in the wider national jurisdiction under the supervision of the National Bank of Kazakhstan. This move aims to bring the 'grey' market into the regulated fold and integrate crypto more deeply into the national financial system.
Retail investor protection is a cornerstone of the Kazakhstani approach. The AFSA enforces strict limits on retail trading to mitigate risk. 'Retail Clients' who do not provide proof of income are limited to investing approximately $1,000 per month. Those who verify their income and assets can invest up to $100,000 per year, subject to caps based on their net worth (5%) or annual income (10%). These limits are strictly enforced by licensed platforms through mandatory KYC/AML procedures.
Mining regulation is equally stringent. Kazakhstan, once a global mining hub, now requires miners to be licensed and report their activities. A critical provision of the 2023 law mandates that miners must sell a significant portion of their mined digital assets on local, licensed exchanges (rising to 75% in 2025). This policy is designed to ensure liquidity within the domestic market and prevent capital flight. Tax compliance is also enforced, with individuals required to file Form 240 for capital gains, taxed at a flat rate of 10%.
Kazakhstan has established itself as one of the most structured cryptocurrency jurisdictions in Central Asia, operating under a 'Allowed-Regulated' status. The regulatory environment is characterized by a unique dual-jurisdiction system. For several years, the Astana International Financial Centre (AIFC) served as the sole legal sandbox and operational zone for cryptocurrency trading, operating under English Common Law principles and regulated by the Astana Financial Services Authority (AFSA). Major global exchanges, including Binance and Bybit, obtained licenses here to offer services to Kazakhstani residents. The framework significantly evolved with the 'Law on Digital Assets' (effective April 2023), which formalized the definitions of secured and unsecured digital assets. This law initially prohibited the circulation of unsecured digital assets (cryptocurrencies like Bitcoin) outside the AIFC, effectively creating a monopoly for the financial center. However, in November 2025, President Kassym-Jomart Tokayev signed pivotal amendments that ended this monopoly, allowing licensed entities to offer crypto trading services in the wider national jurisdiction under the supervision of the National Bank of Kazakhstan. This move aims to bring the 'grey' market into the regulated fold and integrate crypto more deeply into the national financial system. Retail investor protection is a cornerstone of the Kazakhstani approach. The AFSA enforces strict limits on retail trading to mitigate risk. 'Retail Clients' who do not provide proof of income are limited to investing approximately $1,000 per month. Those who verify their income and assets can invest up to $100,000 per year, subject to caps based on their net worth (5%) or annual income (10%). These limits are strictly enforced by licensed platforms through mandatory KYC/AML procedures. Mining regulation is equally stringent. Kazakhstan, once a global mining hub, now requires miners to be licensed and report their activities. A critical provision of the 2023 law mandates that miners must sell a significant portion of their mined digital assets on local, licensed exchanges (rising to 75% in 2025). This policy is designed to ensure liquidity within the domestic market and prevent capital flight. Tax compliance is also enforced, with individuals required to file Form 240 for capital gains, taxed at a flat rate of 10%.
Source Evidence
Primary and secondary sources cited in this analysis
"The circulation of unsecured digital assets is prohibited in the territory of the Republic of Kazakhstan, except for the territory of the Astana International Financial Centre."
"List of firms with license type 'Operating a Digital Asset Trading Facility'."
"A retail client can now only invest up to US$1,000 per month without providing proof of income or assets."
"Kazakhstan has enacted a new law permitting crypto mining and trading beyond the Astana International Financial Center (AIFC), effectively ending the AIFC's exclusive control over crypto sales."
"In Kazakhstan, it is legal to trade cryptocurrencies only on licensed AIFC exchanges: Binance, Bybit, ATAIX Eurasia..."
Web Sources (8)
Sources discovered via web search grounding
Search queries used (5)
- Law on Digital Assets in the Republic of Kazakhstan 2023
- Is crypto trading legal in Kazakhstan for individuals
- Astana International Financial Centre crypto exchange regulation retail investors
- list of licensed crypto exchanges AIFC Kazakhstan
- Kazakhstan cryptocurrency retail trading regulation 2024 2025
https://www.lightspark.com/knowledge/is-crypto-legal-in-kazakhstan
https://www.morganlewis.com/pubs/2023/02/kazakhstan-introduces-new-regulation-of-digital-assets
https://www.binance.com/en/square/post/19048197751361
https://kazakhstan.revera.legal/en/info-centr/news-and-analytical-materials/292-regulirovanie-majninga-i-oborot-kriptovalyut-v-respublike-kazaxstan/
https://news.bitcoin.com/kazakhstan-imposes-purchase-limits-on-retail-crypto-investors/
https://afsa.aifc.kz/aifc-introduces-limits-for-retail-clients-on-buying-and-trading-of-digital-assets-in-aifc-authorised-digital-asset-trading-facilities/
https://caspiannews.com/news-detail/kazakhstan-lifts-restrictions-on-cryptocurrency-mining-trading-2025-11-17-36/
https://chambers.com/articles/new-in-the-regulation-of-digital-assets-in-kazakhstan