Kazakhstan has taken one of its boldest steps yet toward financial modernization. President Kassym-Jomart Tokayev has signed a new banking law that officially places digital financial assets under the country’s national banking framework, ending years of regulatory grey zones and fragmented oversight.
The move does more than legalize crypto activity. It redraws the lines between traditional finance, fintech innovation, and digital currencies, positioning Kazakhstan as one of Central Asia’s most ambitious players in the digital economy.
Crypto moves out of the shadows
For years, Kazakhstan allowed limited crypto activity only inside tightly controlled environments such as the Astana International Financial Center. Outside those zones, digital assets existed in a legal limbo, tolerated but not fully recognized.
That era is now over. The new amendments to the Law on Banking and Banking Activities formally recognize digital financial assets as part of the national financial system. This means crypto trading, token issuance, and digital payments can now operate across the broader economy under unified state supervision.
Industry observers see this as a strategic pivot. Rather than banning or ignoring crypto, Kazakhstan is choosing regulation as a way to control risk while capturing economic value.
Clear rules for digital assets
The law introduces a structured classification of digital financial assets, separating them into defined categories such as asset-backed tokens, stablecoin-like instruments, and electronic financial assets. Each category now comes with clear regulatory obligations.
Tokenized real-world assets will only be issued through licensed platform operators, who must meet risk controls similar to those imposed on traditional securities issuers. This framework closely resembles models already tested in Russia and parts of Eastern Europe.
Unsecured digital assets like Bitcoin are also addressed directly. For the first time, cryptocurrency circulation and exchange operations have a clear legal foundation under Kazakhstan’s banking laws, reducing uncertainty for both investors and institutions.
Licensed exchanges and tighter oversight
Under the new system, crypto exchanges can no longer operate freely or quietly. All platforms must obtain licenses from the National Bank of Kazakhstan, which will act as the primary regulator and supervisor.
The central bank will also maintain an official list of approved cryptocurrencies and introduce trading limits aimed at protecting retail investors. These measures are designed to curb excessive speculation while tightening controls around money laundering and illicit flows.
Authorities have already shown they are serious about enforcement. In the past year alone, regulators blocked access to more than 1,100 unlicensed crypto trading websites. The new law gives them even stronger tools to police the market.
This shift follows earlier restrictions that forced crypto miners to sell assets only through approved platforms. While some of those rules were eased in late 2024, the broader direction remains clear: crypto is welcome, but only within defined boundaries.
Banks get the green light for Fintech
One of the most transformative aspects of the law lies beyond crypto trading itself. Commercial banks are now allowed to invest directly in fintech companies and develop advanced financial technologies in-house.
Banks can also create subsidiaries focused on artificial intelligence, digital platforms, and next-generation banking tools. This effectively blurs the line between traditional banks and fintech startups, encouraging competition and faster innovation.
Analysts say this could reshape Kazakhstan’s financial landscape, especially as younger consumers demand faster payments, smarter apps, and seamless digital services.
Digital payments and the digital tenge
The legislation also strengthens everyday digital finance. It expands legal support for mobile transfers, QR-based payments, and nationwide digital payment infrastructure.
Most notably, the digital tenge has now been formally recognized as legal fiat currency. Its issuance and circulation will be fully controlled by the National Bank, embedding Kazakhstan’s central bank digital currency directly into the legal system.
This move places Kazakhstan among a growing group of countries experimenting seriously with CBDCs, at a time when many governments are still debating their risks and benefits.
Kazakhstan’s crypto journey has been anything but accidental. Authorities have repeatedly signaled ambitions to turn the country into a regional fintech and digital asset hub. Plans announced in December include broader legalization of crypto investments and the creation of a national cryptocurrency reserve valued at $1 billion, with $300 million already set aside.
Social media reactions inside the country have been mixed but intense. Supporters see the law as overdue recognition of an industry that already exists. Critics worry that heavy oversight could stifle innovation if rules become too rigid.
Still, the direction is unmistakable. Kazakhstan is no longer watching the crypto economy from the sidelines. By pulling digital assets into its banking system, the country is betting that regulation, not resistance, is the smarter way forward.
