Quick Answer
Cryptocurrency is legal in Kazakhstan, but subject to strict rules.
- Legal transactions must occur on exchanges licensed by the AIFC.
- Mining and exchange activities require licenses and are heavily regulated.
Legal Status of Crypto in Kazakhstan
In Kazakhstan, cryptocurrency occupies a legal but highly regulated space, moving decisively away from any gray areas. Its legality is conditional, as the Law on Digital Assets generally prohibits the issuance and circulation of unsecured digital assets outside the specific jurisdiction of the Astana International Financial Centre (AIFC). Regulatory bodies like the National Bank of Kazakhstan and the Astana Financial Services Authority (AFSA) enforce this framework through mandatory licensing for mining and exchange operations. Furthermore, all licensed entities must adhere to strict anti-money laundering rules, including customer due diligence and transaction monitoring.
Current Regulations
Kazakhstan's crypto landscape is governed by the Law on Digital Assets, which took effect on April 1, 2023. This legislation classifies cryptocurrency as an unsecured digital asset and generally prohibits its circulation, with a critical exception for transactions conducted on exchanges licensed within the Astana International Financial Centre (AIFC). While cryptocurrency mining was formally legalized in 2020, it now requires a license and must be conducted through accredited mining pools. Recent legislative amendments also signal a move to license and regulate cryptocurrency exchange operators under the direct supervision of the National Bank, expanding oversight beyond the AIFC.
Regulatory Authorities
Several key bodies share the responsibility of overseeing Kazakhstan's crypto market.
- National Bank of Kazakhstan (NBK): The NBK licenses and supervises crypto exchange operators outside the AIFC, determining which cryptocurrencies can be traded. It also develops national crypto policies, including the potential creation of a digital tenge and a state crypto reserve.
- Astana Financial Services Authority (AFSA): The AFSA is the independent financial regulator for the Astana International Financial Centre (AIFC), responsible for licensing and supervising all crypto-related activities within this special economic zone. It enforces a robust legal framework, including comprehensive AML/CFT rules for digital asset platforms.
- Financial Intelligence Unit (FIU): The FIU is the national agency responsible for combating money laundering and terrorist financing. It receives and analyzes suspicious transaction reports from all financial entities, including crypto exchanges operating in Kazakhstan.
- State Agency of Financial Monitoring: This agency, along with other government bodies, is involved in broader oversight, including the licensing of digital mining operations. It also issues directives related to financial compliance and national security.
Historical Context
Kazakhstan’s crypto regulations evolved rapidly from a hands-off approach. In 2020, the government formally legalized mining and a separate law defined cryptocurrency as property. The 2021 crypto crackdown in China drove a massive influx of miners, turning Kazakhstan into a global hub but straining its energy grid. A major shift occurred with the 2023 Law on Digital Assets, which mandated licensing for miners and confined most crypto trading to the AIFC. By 2025, regulators began licensing exchanges nationwide and proposed a state crypto reserve, aiming for greater market control and integration.
Compliance Requirements for Businesses in Kazakhstan
Businesses in Kazakhstan must navigate a stringent regulatory environment designed to combat financial crime. The primary legal framework is the Law on Counteracting Legalisation (Laundering) of Proceeds, which, along with government guidance like the National Risk Assessment, sets the foundation for compliance. For entities within the Astana International Financial Centre (AIFC), these rules are further detailed in the AIFC AML/CFT Rules. Key obligations include:
- Anti-Money Laundering (AML) Checks: Firms must adopt a risk-based approach, guided by internal business risk assessments and national risk profiles. Essential checks include ongoing monitoring of customer transactions to detect suspicious patterns and screening all clients against relevant sanctions and watchlists.
- Know Your Customer (KYC) Requirements: Central to compliance is Customer Due Diligence (CDD). This involves identifying and verifying the identity of the customer and their beneficial owners, understanding the purpose of the business relationship, and assessing their risk profile. For high-risk clients, such as Politically Exposed Persons (PEPs), Enhanced Due Diligence (EDD) is required, which may involve verifying their source of wealth.
- Other Mandatory Procedures: Businesses must appoint a dedicated Money Laundering Reporting Officer (MLRO) to oversee compliance. All suspicious transactions must be reported to Kazakhstan's Financial Intelligence Unit (FIU). Furthermore, companies are required to conduct regular independent audits of their AML systems, provide ongoing training to employees, and maintain comprehensive records of all compliance activities.
Why this matters for Cross-Border Payments
For businesses engaged in cross-border payments with Kazakhstan, these stringent compliance measures create significant operational hurdles. The need for thorough Customer Due Diligence (CDD) and ongoing monitoring means that transactions can be delayed or frozen, introducing uncertainty and increasing administrative costs. This friction can disrupt cash flow and complicate what would otherwise be straightforward international financial flows, despite enhancing overall security.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides infrastructure to bridge traditional and crypto payment systems, easing the friction of cross-border transactions. Its Lightspark Connect product offers managed access to the Bitcoin Lightning Network for businesses using native crypto, featuring AI-powered routing and flexible custody. For regulated institutions, Grid Switch leverages domestic real-time payment rails to access this global network, enabling fiat-to-fiat transfers without direct crypto handling.
These tools enable instant, low-cost settlement, addressing the delays and costs of traditional finance. To help businesses meet stringent regulatory demands, Lightspark facilitates compliance with features like audit-ready reporting and flexible custody options that align with internal security policies. Grid Switch also includes built-in compliance features like Travel Rule and OFAC screening, allowing regulated firms to use the network while meeting their legal obligations.
To see how Lightspark can help your business with compliant, instant cross-border payments, explore their solutions.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Astana Financial Services Authority. Amendments № 7 to AIFC Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Rules. Astana International Financial Centre, 15 Dec. 2024, aifc.kz/wp-content/uploads/2024/06/aml_a6_01.01.2025-01.pdf.
- Greshnikov, Kirill. “New in the Regulation of Digital Assets in Kazakhstan.” Chambers and Partners, 4 July 2025, chambers.com/articles/new-in-the-regulation-of-digital-assets-in-kazakhstan.
- Haidar, Aliya. “Kazakhstan Sets Sights on Becoming Central Asia’s Blockchain Hub.” The Times of Central Asia, 24 July 2025, timesca.com/kazakhstan-sets-sights-on-becoming-central-asias-blockchain-hub/.
- “Kazakhstan - Cryptocurrency Laws and Regulation.” Freeman Law, 2022, freemanlaw.com/cryptocurrency/kazakhstan/.
- “Kazakhstan Introduces Licensing for Crypto Exchanges.” ForkLog, 24 May 2025, forklog.com/en/kazakhstan-introduces-licensing-for-crypto-exchanges/.
- “Kazakhstan Moves to Legalize and Regulate Cryptocurrency Exchange Points.” Interfax, 22 May 2025, interfax.com/newsroom/top-stories/111595/.
- Republic of Kazakhstan. Law of the Republic of Kazakhstan No 191-IV of 28 August 2009 on Counteracting Legalisation (Laundering) of Proceeds Obtained through Criminal Means and Financing of Terrorism. Adilet, 28 Aug. 2009, adilet.zan.kz/eng/docs/Z090000191_.
- Republic of Kazakhstan, Agency for Financial Monitoring. National Risk Assessment of Legalization (Laundering) of Criminal Proceeds. Astana Financial Services Authority, 2021, afsa.aifc.kz/wp-content/uploads/2024/10/NOR-OD-otkr-versiya-ENG.pdf.
