Kazakhstan Compliance Report

Generated 2026-09-22

Partially Regulated

Regulatory Overview

Regulatory Status: Some rules exist but significant gaps; draft legislation or limited guidance
Key Regulator(s): Financial Monitoring Agency of the Republic of Kazakhstan, AIFC Financial Services Authority, Agency for Financial Monitoring of the Republic of Kazakhstan
Primary Legislation: Law on Banks and Banking Activities, Digital Financial Assets Act (2020): Initial regulation of digital assets use an, Constitutional Law on the Astana International Financial Centre: Establishes AIF, Kazakhstan Data Protection & Privacy Regulation Monitor | GDPRI
Travel Rule: Not adopted
Tax Reporting: General Republic of Kazakhstan: The National Bank of Kazakhstan has historically maintained a cautious stance, stating that cryptocurrencies are not legal tender and are generally viewed as digital property or assets. The use of cryptocurrencies for payments is prohibited outside the AIFC.. Astana International Financial Centre (AIFC): The AIFC operates under its own jurisdiction based on English common law and has a more progressive approach to digital assets. Within the AIFC, specific regulations allow for the operation of digital asset exchanges and other crypto-related activities under the supervision of the AIFC Financial Services Authority (AFSA). Here, digital assets are recognized as a specific class of assets.. General Principle: Gains derived from the sale or exchange of digital assets are generally subject to Individual Income Tax (IIT). When a cryptocurrency is sold for a higher price than its acquisition cost, the difference is considered a capital gain.. Tax Rate: The standard IIT rate in Kazakhstan is a flat 10%.. Taxable Events: Selling crypto for fiat, exchanging one crypto for another (crypto-to-crypto trades), using crypto to purchase goods or services.

Key Facts

aml A. UN Sanctions: Requirement: As a UN member state, Kazakhstan is obligated to implement all UN Security Council resolutions imposing sanctions. These are universally binding. Compliance: VASPs must screen customers and transactions against the UN Security Council Consolidated List (individuals and entities associated with terrorism and proliferation of weapons of mass destruction, and other sanction programs). Legal Reference: UN Security Council Resolutions. URL: UN Security Council Consolidated List B. OFAC (U.S.) Sanctions: Requirement: While OFAC sanctions are primarily U.S. law, their extra-territorial reach is significant. Any VASP that deals with U.S. persons (citizens, residents, entities), uses U.S. financial systems (e.g., for USD transactions), or handles U.S.-origin technology or services, falls under OFAC's jurisdiction. Given the global nature of crypto, avoiding a U.S. nexus can be challenging. Legal Reference: Executive Orders and U.S. Treasury Department Regulations (e.g., 31 CFR Chapter V).
custody Astana Financial Services Authority (AFSA): The independent regulator for the AIFC. AFSA Rulebook: https://afsa.aifc.kz/rulebook/ AIFC Digital Asset Business Rules (DABR): Contains specific requirements for firms involved in digital asset activities. AIFC Conduct of Business Rules (COB): General rules for how firms must conduct business with clients. AIFC Prudential Rules (PRU): Rules related to capital, risk management, and financial soundness. AIFC Anti-Money Laundering and Counter-Terrorist Financing Rules (AML): Mandatory for all regulated firms. License Type: Firms typically seek a license for "Providing Digital Asset Custody Services" under the AIFC Digital Asset Business Rules. This falls under the broader category of "Digital Asset Business." Submission of a comprehensive application form.
enforcement Regulator Name: Agency of the Republic of Kazakhstan for Financial Monitoring (AFM), in cooperation with the Ministry of Energy, National Security Committee, and local authorities. Entity Targeted: Numerous unregistered cryptocurrency mining farms operated by various individuals and organizations across the country. Violation Type: Unlicensed business activity, illegal electricity consumption, tax evasion, sometimes money laundering, and operating outside the legal framework for crypto mining. Outcome: Shut down of operations, seizure of equipment (hundreds of thousands of mining devices), criminal charges against operators, and significant administrative fines. While individual penalty amounts for each entity are not publicly disclosed, the total economic impact and asset seizures were substantial. For instance, in 2022 alone, the AFM reported stopping 51 illegal mining farms and confiscating equipment worth billions of tenge. Date: Ongoing, but major crackdowns and public announcements occurred particularly between January 2022 and March 2023. Outcome: Over 50 illegal mining farms were shut down, leading to the confiscation of equipment and initiation of criminal cases. This action significantly reduced the strain on the national energy grid and established a precedent for strict enforcement against unregistered mining. AFM: Kazakhstan clamps down on illegal crypto mining farms (This link provides context on various AFM actions, including illegal crypto-related activities.) Reuters: Kazakhstan clamps down on illegal crypto miners as electricity crunch looms Kazinform: 51 illegal crypto farms shut down in Kazakhstan Entity Targeted: Operators and websites of unregistered cryptocurrency exchanges and peer-to-peer trading platforms. Violation Type: Unlicensed financial activity, facilitation of illegal financial operations (e.g., fraud, money laundering), violation of financial regulations. Penalty Amount: Not specified as a direct fine in publicly available reports. Outcome: Blocking of website access, criminal charges against individuals involved, seizure of funds (if traceable).
general Astana International Financial Centre (AIFC): Within the special economic zone of the AIFC, there is a comprehensive regulatory framework for digital assets, including exchanges, custody, and other related services. This framework is based on English common law principles and is designed to attract innovation while ensuring investor protection and market integrity. National Level (Outside AIFC): Historically, crypto activities outside the AIFC were largely unregulated or restricted. However, recent national legislation has aimed to formalize and regulate the sector. Critically, it largely directs national crypto operations (like exchanges) to be licensed and operate within the AIFC framework, creating a funnel. Crypto mining is regulated nationally with specific licensing and taxation requirements. The use of crypto as a payment method for goods and services is generally prohibited outside the AIFC. Role: The independent regulator for the AIFC. It develops and enforces the AIFC's rules for financial services, including digital assets. It licenses and supervises crypto exchanges, custodians, and other virtual asset service providers (VASPs) operating within the AIFC. Role: The primary financial regulator for the Republic of Kazakhstan outside the AIFC. While the AIFC handles crypto licensing directly, ARDFM plays a role in broader financial market stability and oversight that interacts with digital asset policies, particularly in preventing the use of crypto as legal tender. Role: Responsible for monetary policy, financial stability, and the functioning of the payment system. It has taken a cautious stance on cryptocurrencies as a form of payment, reiterating that the Kazakhstani Tenge is the sole legal tender. It collaborates with other bodies on the broader implications of digital assets. Role: Responsible for the development of digital technologies, innovation, and state policy in the field of digitalization. It is the primary body for regulating and licensing crypto mining activities at the national level. AIFC Digital Asset Regulations (2018, with subsequent amendments): These regulations establish the licensing regime for firms dealing with digital assets, covering activities such as operating a Digital Exchange, providing Digital Custody, and advising on Digital Assets. They define "Digital Assets" and "Virtual Assets" and outline requirements for security, governance, and financial crime prevention. Reference: Available on the AFSA website, under "AIFC Acts" or "Rules." Specific links to the Digital Asset Regulations can often be found on pages like https://afsa.aifc.kz/digital-assets-aifc/ which further link to the detailed rules.
licensing AIFC Financial Services Authority (AFSA): The independent regulator of the AIFC, responsible for licensing, supervision, and enforcement of financial services, including virtual asset activities. AIFC Court and International Arbitration Centre: Provides independent resolution of disputes. Financial Monitoring Agency of the Republic of Kazakhstan: The national financial intelligence unit (FIU) for anti-money laundering and counter-terrorist financing (AML/CFT) oversight, which works in coordination with AFSA for AIFC entities. License Type: Operating a Digital Asset Trading Facility (DATF). Key Services: Matching orders, trade execution, offering a trading platform for various digital assets (utility tokens, security tokens, potentially payment tokens/cryptocurrencies). License Type: Providing Custodian (Digital Assets) services. Definition: A person who provides a facility where multiple third-party buying and selling interests in Digital Assets are able to interact in the facility in a way that results in a Contract for sale or purchase. This broadly covers cryptocurrency exchanges. Key Services: Secure storage of private keys, multi-signature wallets, cold storage solutions, segregated client accounts, record-keeping.
sanctions To avoid inadvertent dealings with sanctioned entities, VASPs must conduct daily checks against the OFAC Specially Designated Nationals (SDN) List and other relevant sanctions databases. Utilize compliance platforms like Snowden Compliance to automate sanctions screening processes. Regularly update internal sanction lists to reflect the latest regulatory changes.
securities National Bank of Kazakhstan (NBK) – regulates monetary policy and oversees securities and payment systems. Website: https://www.nbk.kz Agency for Regulation and Development of the Financial Market (Agency) – licenses financial service providers and enforces compliance with financial regulations. Website: https://www.akim.gov.kz Law No. 184-VI ЗРК "On amendments and changes to certain legislative acts of the Republic of Kazakhstan on matters of ensuring the uniformity of measurement and standardization" (effective 21 October 2018) – introduces exemptions for international offerings via the Astana International Financial Center (AIFC) under Article 22‑1, allowing a Kazakhstan resident to issue securities internationally without NBK consent if at least 20% are offered on the AIX. Securities Market Law (adopted by Decree of the President dated 21 October 2018) – governs listing, trading, and issuance of securities; includes provisions for digital asset activities through a broad Securities Broker-Dealer License. Trading of shares, debentures, bonds, and other securities. Crypto transaction facilitation (buy/sell, custody, exchange services). E‑wallet, payment, foreign exchange, and merchant services. Financial consulting, depository agent activities, issuance of debit cards (in specific cases), hosting crypto trading platforms, and software development related to financial services.
stablecoin Law of the Republic of Kazakhstan No. 278-VII ZRK dated June 24, 2023 "On Digital Assets in the Republic of Kazakhstan" (and subsequent amendments). Note: This law came into force on September 1, 2023, and defines the legal status and turnover of digital assets. URL (Official publication, in Russian/Kazakh): Zakon.kz - Law on Digital Assets (You may need to use translation tools for full text). The Law "On Digital Assets" defines "digital assets" broadly. Stablecoins would typically fall under the category of "secured digital assets" (обеспеченные цифровые активы). Secured Digital Asset: A digital asset that certifies property rights to specific goods, services, or property, including money, and is backed by real assets or obligations of the issuer. Not classified as E-money/Payment Tokens: Stablecoins, under this law, are treated as a distinct category of digital assets, separate from electronic money as defined by the Law "On Payments and Payment Systems" or traditional payment tokens. E-money typically refers to digital representations of fiat currency issued by banks or licensed payment organizations. Not classified as Securities: While some stablecoins could potentially be deemed "security tokens" if they grant specific investment rights (e.g., profit share, equity), most typical fiat-backed stablecoins are generally viewed as secured digital assets rather than traditional securities under this framework. The national law provides general principles for secured digital assets, stating they must be backed by real assets or obligations. However, it does not specify granular reserve requirements (e.g., 1:1 fiat backing, independent audits, segregated accounts) for stablecoins specifically within the national jurisdiction. These specifics would likely be elaborated in subordinate legislation by the National Bank of Kazakhstan (NBK) or the Agency for Regulation and Development of Financial Market (ARDFM).
status National Bank of Kazakhstan (NBK): Primary regulator for crypto exchanges, digital platforms, and unsecured digital assets nationwide; approves lists of permitted cryptocurrencies, sets operational limits, AML rules, and investor protections; licenses and supervises operators. Astana Financial Services Authority (AFSA): Supervises crypto activities within the AIFC, including licensing for exchanges and services; handles international and regional investors. Ministry of Digital Technology: Issues licenses for cryptocurrency activities starting April 1, 2023, particularly within AIFC. Law on Digital Assets: Effective April 1, 2023; establishes legal framework for digital assets, including issuance, circulation, and regulation. New Banking Law (Law on Banks and Banking Activities): Approved by parliament and expected signed early 2026; integrates cryptocurrencies and digital financial assets (DFAs) into mainstream finance, defines DFAs (stablecoins, backed assets, electronic instruments), licenses exchanges and platforms under NBK, recognizes digital tenge CBDC. Digital Financial Assets Act (2020): Initial regulation of digital assets use and circulation. Constitutional Law on the Astana International Financial Centre: Establishes AIFC's special financial regime. Digital Code: Effective July 11, 2026; covers smart contracts and cybersecurity but not core crypto trading.
tax General Republic of Kazakhstan: The National Bank of Kazakhstan has historically maintained a cautious stance, stating that cryptocurrencies are not legal tender and are generally viewed as digital property or assets. The use of cryptocurrencies for payments is prohibited outside the AIFC. General Principle: Gains derived from the sale or exchange of digital assets are generally subject to Individual Income Tax (IIT). When a cryptocurrency is sold for a higher price than its acquisition cost, the difference is considered a capital gain. Tax Rate: The standard IIT rate in Kazakhstan is a flat 10%. Taxable Events: Selling crypto for fiat, exchanging one crypto for another (crypto-to-crypto trades), using crypto to purchase goods or services. Cost Basis: The acquisition cost (including any fees paid) is used to calculate the gain. Holding Period: Kazakhstan's tax code does not generally differentiate between short-term and long-term capital gains for individuals; the 10% rate applies regardless of the holding period. Losses: Capital losses can generally be offset against capital gains of the same type in the same tax period. General Principle: Profits from the sale or exchange of digital assets are subject to Corporate Income Tax (CIT).

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile