Cryptocurrency is legal in Kazakhstan, but it is not money. It is treated as a regulated digital asset that can be held, traded and mined within a licensing framework, while the tenge remains the only legal tender and direct payment in crypto remains restricted. Until recently, trading was confined to the Astana International Financial Centre (AIFC). Since 1 May 2026, licensed and registered operators can also work onshore under the National Bank of Kazakhstan.
This guide sets out the current legal status, who regulates what, what activities need a licence, how crypto is taxed, and where the law remains unsettled. It is written for investors, businesses, miners, exchanges and startups looking at Kazakhstan.
Key takeaways
- Crypto is legal but conditional. Circulation is permitted through licensed or registered providers, not freely between anyone, anywhere.
- Crypto is not legal tender and not a means of payment. Unsecured digital assets are not recognised as payment instruments, financial instruments or financial assets. A purchase paid for “in crypto” typically works through conversion to tenge by a licensed intermediary.
- The law now has two main categories. Unsecured digital assets (such as Bitcoin and Ether) and digital financial assets (stablecoins, tokenised real assets and digital forms of traditional financial instruments), each with a different regulator and rulebook.
- Licensing started on 1 May 2026. Unsecured digital asset exchange operators are licensed by the National Bank, and trading platforms and digital financial asset platforms are registered, outside the AIFC.
- The AIFC remains a parallel regime. It regulates digital-asset firms within its own jurisdiction and legal framework.
- Tax is partly settled and partly pending. Mining income is taxable and miners pay a separate digital mining fee. A July 2026 presidential decree has ordered work on a personal income tax exemption for transactions through Kazakh providers, but that requires legislation.
- Unlicensed activity is the main risk, both for operators and for foreign platforms serving Kazakh users.
Myths and realities
| Common belief | Current position |
| “Crypto is banned in Kazakhstan.” | No. It is legal, and the state is actively building a regulated market. |
| “Crypto can only be traded in the AIFC.” | Outdated. That was the position from 2023 until the November 2025 and January 2026 reforms and the National Bank regime that began on 1 May 2026. |
| “Crypto is a currency.” | No. The tenge is the only legal tender. Unsecured digital assets are not a means of payment. |
| “Shops can accept Bitcoin directly.” | Direct crypto payment remains restricted. The practical route is conversion to tenge through a licensed provider. |
| “Crypto gains are tax-free.” | Not automatically. Mining income is taxed, and the personal income tax exemption announced in July 2026 depends on follow-up legislation and on using Kazakh providers. |
| “Mining is illegal.” | No. Mining is permitted under a regulated regime and has been expanded, but it carries licensing, tax and energy-related conditions. |
How the law got here
| Period | Development |
| Around 2018 onward | The AIFC develops a regulatory regime for digital-asset activity within the centre |
| 2020–22 | A legal regime for digital mining is introduced; cryptocurrency is characterised as property; a mining tax applies from 2022 |
| 2023 | Law “On Digital Assets in the Republic of Kazakhstan” creates the core definitions and licensing concepts. Outside the AIFC, issuance and circulation of unsecured digital assets are largely restricted |
| November 2025 | A law on artificial intelligence and digitalisation is reported to lift the earlier restriction on circulation outside the AIFC and to permit mining by legal entities and sole proprietors |
| 17 January 2026 | New Law on Banks and Banking Activities and related financial-market amendments are signed. They recognise digital financial assets as a new asset class, provide for licensing of digital platform operators, and confirm the digital tenge as a form of national currency |
| 1 May 2026 | Comprehensive circulation regime in force: National Bank licensing of unsecured digital asset exchange operators and registration of trading and digital financial asset platforms |
| 7 July 2026 | Presidential decree on stimulating the digital asset industry, covering tax incentives, stablecoin mechanisms for cross-border payments and energy for mining |
Legal classification: what a “digital asset” is
The law treats digital assets as property-type objects created through cryptographic and distributed-ledger technology. The classification decides which regulator and which rules apply.
| Category | Examples | Legal character | Main regulator |
| Unsecured digital assets | Bitcoin, Ether and other cryptocurrencies, including mined assets | Not recognised as a means of payment, a financial instrument or a financial asset; may circulate only through licensed or registered operators | National Bank (outside the AIFC) |
| Digital financial assets (DFAs) | Stablecoins backed by money; tokenised real assets; digital forms of traditional financial instruments | A new class of investment instruments issued through licensed platforms | The financial market regulator for DFAs generally; the National Bank for stablecoins |
| Digital tenge | Central bank digital currency | A form of national currency under National Bank control | National Bank |
The National Bank is also expected to maintain a list of cryptocurrencies approved for circulation on regulated platforms, along with operating limits and restrictions. Check the current list before assuming a particular token can be traded or listed.
Who may do what: a licensing map
| Activity | Status | Where it is regulated | Key point |
| Buying, holding and selling crypto as an individual | Permitted through licensed or registered providers | National Bank regime onshore; AFSA within the AIFC | Use a licensed or registered provider to stay inside the framework |
| Operating a crypto exchange (unsecured digital assets) | Licence required | National Bank (onshore) or AIFC licence | Applications are filed with the National Bank from 1 May 2026 |
| Operating a digital asset trading platform | Registration required | National Bank | Separate from exchange operator licensing |
| Operating a digital financial asset platform / issuing DFAs | Registration or licensing as a platform operator | Financial market regulator and National Bank (for stablecoins) | Operators are new financial market participants subject to risk-management and investor-protection standards |
| Mining | Permitted for legal entities and sole proprietors | Digital mining regime; tax authorities | Expect licensing, pool and reporting conditions, plus a separate mining fee |
| Accepting crypto as payment for goods | Not directly permitted | National Bank and payment legislation | Conversion to tenge via a licensed intermediary |
| Offering services to Kazakh users from abroad | High risk without a licence | Depends on structure | The policy goal is to bring activity onto domestic regulated platforms |
The lists of licence requirements and application documents are published by the National Bank, so use the current official requirements, not secondary summaries.
AIFC versus onshore after 1 May 2026
The AIFC has its own legal and regulatory framework based on English-law principles, with its own financial regulator (AFSA), court and arbitration centre. It continues to regulate firms operating with digital assets within its jurisdiction.
Outside the AIFC, the National Bank now provides a licensing and registration route. The practical effect:
- AIFC remains attractive for firms that want an English-law environment and a regulator familiar with international digital-asset business.
- Onshore licensing gives access to the domestic market, including local banks and retail users, under Kazakh law and Kazakh courts.
- Many groups will use both, with an AIFC entity for some activities and an onshore entity for domestic services, but each entity must hold the licence for the activity it actually carries out.
Before choosing, map each service (custody, exchange, issuance, payments, mining) to the regulator that covers it, because overlap between regimes can create gaps.
Payments: what is still prohibited
The 2026 reforms were widely described as legalising crypto circulation, but they did not make crypto a payment currency. Legal commentary emphasises that the tenge is the only legal means of payment, and that unsecured digital assets can serve as a source of funds rather than as money. In practice:
- A consumer can hold crypto and, through a licensed provider, convert it to tenge to pay.
- A merchant should expect to receive tenge, not crypto.
- Businesses that price goods in crypto or accept it directly risk breaching payment and currency rules.
- The July 2026 decree refers to stablecoin mechanisms for cross-border payments. Follow-up regulation is needed, so do not build a payments product on the assumption that these rules are already available.
Mining
Mining has been legal since 2020 and the regime was relaxed in late 2025 to allow legal entities and sole proprietors to mine. Operators should plan for:
- Registration or licensing and, in some cases, pool requirements under the digital mining regime
- Taxation of mining income as taxable income (with a mechanism in the 2026 Tax Code to prevent double taxation when mined assets are later sold) and a separate digital mining fee
- Energy supply and sourcing, which has been a sensitive issue in Kazakhstan. The July 2026 decree addresses the use of surplus or flared gas for mining, but implementation will come through further government action
If you are planning a mining operation, confirm the licence category, the electricity arrangements and the fee structure before committing capital.
Taxation: what is settled and what is pending
Settled (as reported):
- The Tax Code in force from 2026 contains rules for determining taxable income from digital-asset transactions, including valuation and the treatment of mined assets.
- Income from mining is treated as taxable income when the assets are received.
- Miners pay a separate digital mining fee in addition to income tax.
Pending:
- The 7 July 2026 decree directs the government to submit draft legislation by 1 April 2027 exempting individuals from personal income tax on income from digital-asset transactions carried out through Kazakh digital-asset service providers for 1 January 2026 to 31 December 2028.
- It also called for an incentive for individuals who bring previously acquired or mined assets onto Kazakh platforms (due by 1 September 2026) and a voluntary disclosure mechanism for earlier holdings (due by 31 December 2026). We have not been able to confirm from official sources whether these steps have been completed, so check current status before relying on them.
- Reports indicate the benefit is meant for compliant assets, and not those linked to fraud, money laundering or unlicensed services.
The practical advice is to keep complete records of acquisition dates, costs, sources of funds and platform used, because the rules favour assets that can be traced to regulated channels.
AML, KYC and sanctions
Anti-money-laundering rules apply to licensed providers, which must run customer identification, transaction monitoring and internal governance programmes. For businesses, that means:
- Expect full KYC when opening accounts and moving funds to and from regulated platforms.
- Source-of-funds questions are normal, particularly for assets brought in from foreign platforms.
- Sanctions and high-risk screening is a major focus for providers and their banking partners, so be ready to document counterparties and flows.
- Unlicensed or peer-to-peer channels carry higher regulatory and criminal-law risk and may be treated as red flags by banks.
Civil-law status: property, contracts and disputes
Kazakhstan characterises cryptocurrency as property rather than money, so it can be owned, transferred and made the subject of contracts, but several civil-law questions are still developing:
- Contracts. Agreements to buy, sell, lend or stake crypto are enforceable in principle, but contracts that circumvent licensing or payment rules face validity and enforcement risk.
- Disputes. Choose governing law and forum deliberately. Parties with AIFC connections may use the AIFC court or arbitration centre where jurisdiction applies. Others will rely on Kazakh courts or arbitration.
- Evidence. Courts do not yet have clear guidelines on the admissibility of blockchain-based evidence, so keep conventional records alongside on-chain data.
- Insolvency, inheritance and security interests. Treatment of crypto held on exchanges or in self-custody is less developed. Document custody arrangements and legal title carefully.
- Anonymous counterparties. Recovery against pseudonymous wallet holders is difficult. Focus on the regulated intermediaries and fiat off-ramps that sit in the transaction chain.
Compliance guide by audience
| If you are… | Start with |
| An individual investor | Use only licensed or registered platforms; keep records of acquisition and transfers; watch the tax exemption legislation; avoid unlicensed peer-to-peer deals |
| A business wanting to hold crypto on its balance sheet | Check accounting and tax treatment, custody arrangements, board approval and AML documentation |
| A business wanting to accept crypto from customers | Do not take direct payment; use a licensed intermediary that converts to tenge; update terms and invoices |
| An exchange or platform startup | Decide AIFC versus onshore; check National Bank licence or registration requirements; build AML, cyber-security and governance frameworks before applying; protect your IP and brand |
| A miner | Confirm licence and pool requirements, electricity supply, mining fee and tax treatment; document equipment hosting arrangements |
| A foreign platform serving Kazakh users | Treat service to Kazakh residents as a regulated activity; do not rely on a foreign licence; take advice on onshore or AIFC structure and on marketing restrictions |
Open questions and what to watch
- Implementing regulations. The National Bank’s list of permitted tokens, operating limits and detailed licence conditions will shape what is commercially viable.
- Tax legislation. Whether and how the personal income tax exemption for regulated platforms is enacted, and its conditions.
- Stablecoin and cross-border payments. The mechanism envisaged by the July 2026 decree and whether it changes the payment position.
- State digital-asset reserve. The Kazakh authorities have announced an intention to build a strategic crypto reserve, and its structure could affect market dynamics.
- Court practice. First decisions on enforcement, evidence and insolvency involving crypto will clarify civil-law uncertainties.
A note for readers from India
Businesses and investors from India will notice a different approach. India does not ban virtual digital assets but taxes gains at a flat 30 percent with a 1 percent tax deducted at source on transfers and has not enacted a dedicated licensing regime for exchanges, whereas Kazakhstan now licenses operators and is considering tax incentives for activity on its regulated platforms. Indian groups with Kazakh operations should therefore not assume home-country practice carries over, and should look at tax residence, FEMA and reporting obligations on both sides. Rules in both countries can change, so confirm the position when structuring.
Common mistakes we see
- Relying on outdated “AIFC-only” advice from before the 2026 reforms.
- Assuming crypto can be used as payment in ordinary commercial contracts.
- Serving Kazakh customers from an unlicensed offshore entity.
- Starting mining without confirming licence, energy and fee arrangements.
- Treating the July 2026 tax decree as already in force.
- Skipping source-of-funds documentation for assets moved from foreign platforms.
- Failing to align corporate structure with the activity actually carried out in each entity.
- Neglecting IP and brand protection until after launch.
Frequently asked questions
Is cryptocurrency legal in Kazakhstan? Yes, within the licensing framework. It is regulated as a digital asset, not as currency.
Can I pay for goods with Bitcoin in Kazakhstan? Not directly. The tenge is the only legal tender, and crypto payments generally work through conversion by a licensed intermediary.
Do I need a licence to run a crypto exchange? Yes. Onshore, unsecured digital asset exchange operators are licensed by the National Bank, and trading platforms and digital financial asset platforms are registered with it. In the AIFC, you need an AIFC licence from the regulator there.
Is crypto mining allowed? Yes, under a regulated regime that allows legal entities and sole proprietors to mine, with licensing, tax and fee conditions.
Are crypto profits taxed? Mining income is taxable and miners pay a separate fee. A three-year personal income tax exemption for transactions through Kazakh providers has been ordered by presidential decree but needs legislation, so check its status.
What is the difference between unsecured digital assets and digital financial assets? Unsecured assets are cryptocurrencies like Bitcoin with no underlying claim on an issuer. Digital financial assets include stablecoins, tokenised real assets and digital forms of traditional financial instruments, and are issued through licensed platforms.
Can foreign exchanges serve customers in Kazakhstan? Only with care. The policy aims to bring activity onto domestic regulated platforms, so serving Kazakh residents without a licence carries regulatory risk.
Kazakhstan has moved from restricting crypto to regulating it, and the direction of travel is towards a licensed, onshore market supported by tax incentives and a national strategy. The opportunity is real, but so is the compliance burden: classification, licensing, AML, payments restrictions and tax all depend on how an activity is structured. Businesses that build the legal structure first, and keep records that show a clean path from fiat to digital asset and back, will be best placed as the rules settle.
Disclaimer: This article is for general information and does not constitute legal, tax or investment advice or create a lawyer-client relationship. Laws, regulations and practice change, and individual circumstances differ. Please obtain advice specific to your situation.
Sources and further reading
- National Bank of Kazakhstan, “Kazakhstan introduces regulation of digital asset turnover” (30 April 2026): nationalbank.kz/en/news/informacionnye-soobshcheniya/19193
- Qazinform, “Head of State inks decree to boost digital asset industry in Kazakhstan” (7 July 2026): qazinform.com
- Cointelegraph, “Kazakhstan limits crypto trading to central bank-approved coins” (19 January 2026): cointelegraph.com/news/kazakhstan-president-law-crypto-central-bank-regulation
- Incrypted, “Tokayev Signs Law on Banking and Digital Asset Regulation in Kazakhstan” (19 January 2026): incrypted.com
- Coinpaper, “Kazakhstan Opens Door to Nationwide Crypto Use With New Law” (November 2025): coinpaper.com/12421/kazakhstan-opens-door-to-nationwide-crypto-use-with-new-law
- Chambers, “Kazakhstan: An Overview” (digital assets section): chambers.com/content/item/7088
- CryptoSlate, “Kazakhstan Law on Digital Assets No. 193-VII LRK” (consolidated framework summary): cryptoslate.com/crypto-laws/kazakhstan-law-digital-assets-193-vii-lrk/
- Cryptonews and Cryptopolitan reports on crypto payments after 1 May 2026: cryptonews.net/news/legal/32863930/ ; cryptopolitan.com/kazakhstan-almost-legalizes-crypto-payments/
- Startup Fortune, “Kazakhstan Exempts Crypto Gains From Tax and Legalizes Flared Gas for Bitcoin Mining” (July 2026): startupfortune.com
- Euronews, “Kazakhstan offers crypto amnesty as it seeks to bring billions in digital assets home” (11 August 2026): euronews.com/next/2026/08/11/kazakhstan-offers-crypto-amnesty-as-it-seeks-to-bring-billions-in-digital-assets-home
- Mondaq, “Taxation of Mining and Cryptocurrency Circulation in Kazakhstan, Part II”: mondaq.com/fintech/1758832
- Esplora Legal, “Blockchain Legal Framework in Kazakhstan”: esploralegal.com/blockchain-legal-framework-in-kazakhstan/
