From Miner Haven to Crypto Payment Hub
Kazakhstan, long known as a Bitcoin mining stronghold, is now shifting gears toward crypto adoption and legal payments. In a landmark announcement at the Astana International Forum (AIF), President Kassym-Jomart Tokayev revealed plans to launch an innovative “CryptoCity” pilot zone, where people can spend cryptocurrencies for goods and services.
The initiative marks a major departure from the restrictive policies Kazakhstan followed until recently—where crypto was legal to mine but almost impossible to use.
The AIFC Bottleneck—and a $15 Billion Leak
For years, crypto trading was restricted to platforms registered with the Astana International Financial Center (AIFC). This bottleneck led to a proliferation of illegal exchanges and the outflow of $15 billion in digital assets from the country, according to the Central Bank of Kazakhstan.
Now, that’s changing.
Deputy Minister for Digital Development Kanysh Tuleushin recently called for “flexible rules” to replace outdated regulations, predicting that such reforms could boost annual state revenue by $370 million—a huge leap from the $35 million collected from miners over the past three years.
Draft Laws, Licenses, and Legal Platforms
Kazakhstan’s National Bank has already drafted new legislation to:
- License crypto exchanges across the country (not just in AIFC),
- Promote a state-run trading platform, and
- Clarify the legal standing of digital assets.
These moves indicate that the country is preparing for broader crypto integration, moving beyond mining and speculative trading into the world of real-world use cases.
A Bigger Tech Vision
Kazakhstan’s ambitions go beyond crypto. At the forum, President Tokayev highlighted the country’s larger goal:
The government is investing in AI, digital infrastructure, and human capital, aiming to transform Kazakhstan into a “Eurasian IT powerhouse.”
The AIF brought together global leaders like ex-UN Secretary General Ban Ki-moon and Council of Europe Secretary General Alain Berset, reflecting Kazakhstan’s rising geopolitical and technological clout.
CryptoCity: A Pilot With Global Potential
Kazakhstan’s CryptoCity could be a blueprint for future crypto integration, especially in emerging markets. With its legal framework shifting, mining backbone already in place, and digital ambitions expanding, the country is now setting the stage to become a crypto-fintech hub for the region.
If successful, the pilot zone may encourage international collaboration, foreign investment, and a regulated path for digital asset use in everyday commerce—not just mining or trading.
