Regulation of Mining and Cryptocurrency Circulation in the Republic of Kazakhstan
President of Kazakhstan Kassym-Jomart Tokayev has signed a law introducing amendments to legislation concerning artificial intelligence and digitalisation. This document establishes, for the first time at the national regulatory level, a framework for the circulation of unsecured digital assets (cryptocurrencies) and the regulation of mining within the country. Until now, such operations were legally permitted only within the jurisdiction of the Astana International Financial Centre (AIFC).
Key Changes in Cryptocurrency and Mining Regulation
- Circulation of Crypto-Assets: The new law prohibits the organisation of digital asset circulation without obtaining a corresponding licence or permit, creating a unified national regulatory regime for crypto-assets.
- Official Status of Mining: Simultaneously, the document grants an official status to mining: mining is permitted for individual entrepreneurs and legal entities of Kazakhstan and is not classified as an activity organising the circulation of digital assets. This reduces regulatory risks and creates legal certainty for the industry.
The draft law was prepared in accordance with the President's instruction on the need to create an infrastructure for the legal circulation of digital assets. This is particularly relevant as, according to expert estimates, only about 5% of investors use licensed crypto-exchanges of the AIFC, while the remainder of the market operates in a "grey zone".
New Market Participants
Following the law's adoption, the National Bank and the Agency for Regulation and Development of the Financial Market have proposed introducing a new category of market participants – crypto-exchange service providers.
- Such providers will operate based on a licence, be supervised by the National Bank, and carry out operations for the exchange of cryptocurrency for money.
- The list of available cryptocurrencies for purchase will be approved by the National Bank.
- The activities of crypto-exchanges operating within the AIFC jurisdiction will remain unchanged and are not subject to the new requirements.
The adopted amendments aim to form a transparent and regulated crypto-market in Kazakhstan, reduce the share of illegal operations, and create conditions for safe work in the sphere of mining and cryptocurrency circulation.
These changes create new obligations for all participants in Kazakhstan's crypto-market.
Ensure Your Business is Ready to Operate Under the New Conditions
We are ready to conduct an express analysis of your activities (mining, exchange, circulation of crypto-assets) and provide consultation on:
- The necessity and procedure for obtaining a licence/permit.
- Reducing regulatory risks in light of the new requirements.
- Determining your legal status (mining or asset circulation).
Contact REVERA's experts to build a legal and safe strategy for working with digital assets in Kazakhstan.
Author: Alisher Kissamenov
REVERA lawyers will help you adapt to the changes
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