Kazakhstan plans to become crypto hub of Central Asia
Kazakhstan urged to expand crypto laws beyond AIFC zone
Kazakhstan has the potential to become Central Asia’s premier crypto hub if it lifts current restrictions on digital asset trading and expands blockchain-friendly policies, according to Kanysh Tuleushin, the country’s first vice minister of digital development.
In an op-ed published in Kazakhstanskaya Pravda, Tuleushin argued that broader legalization and nationwide crypto rules could unlock massive economic benefits, reports Cointelegraph.
Tuleushin emphasized that regulated digital asset trading could channel hundreds of billions of tenge into the national budget while fostering a transparent ecosystem with licensed exchanges and legal crypto ATMs. He urged policymakers to unify crypto regulations beyond the Astana International Financial Centre (AIFC), the nation’s only legal crypto trading zone.
Mining as a tool for energy modernization
The vice minister positioned crypto mining as a solution to Kazakhstan’s aging power infrastructure. He pointed to the 70/30 energy initiative, where foreign investment upgrades thermal power plants—allocating 70% of output to the national grid and 30% to miners. Tuleushin also suggested capturing associated petroleum gas from oil fields to power mining farms, helping reduce emissions and monetize waste energy.
Kazakhstan’s mining sector has added $34.6 million in taxes since 2021, with 84 licenses issued and 415,000 mining machines registered as of 2023. AIFC’s crypto trading volume quadrupled from $324 million in 2023 to $1.4 billion in 2024. Starting in 2025, miners must sell 75% of their assets via AIFC platforms.
Unregulated activity remains a major hurdle
Despite formal progress, the majority of crypto trades—roughly $4.1 billion in 2023—occur outside government oversight. Officials shut down 36 illegal exchanges in 2024 and froze $4.8 million in assets linked to illicit activities. Tuleushin highlighted the urgency of establishing nationwide legal frameworks to reduce risks and improve tax collection.
Kazakhstan is also moving forward with its digital tenge central bank digital currency (CBDC), slated for rollout in 2025. Regionally, countries like Uzbekistan and Kyrgyzstan are also embracing blockchain. Just last week, Binance signed an MoU with Kyrgyzstan’s National Agency for Investments to advance crypto payments and blockchain education.
Recently we wrote that Mastercard has launched its groundbreaking Crypto Credential solution in the United Arab Emirates and Kazakhstan, a move aimed at making cryptocurrency transactions simpler, safer, and more accessible.
