Hey there! Interesting crypto news coming out of Kazakhstan. The situation is developing along the lines of "giving with one hand and taking away with the other." Let's break down what's happening and what it means for investors and the market.
The news in a nutshell:
Authorities in Kazakhstan are paving the way for legalizing cryptocurrency investments through regulated exchanges, while simultaneously moving to prohibit the use of crypto for payments for goods and services within the country.
Key points you need to know:
Regulation instead of prohibition. A bill is currently in the Senate that will, for the first time at the national level (beyond just the AIFC – the local fintech hub), allow the creation of crypto exchanges. These will be supervised by the National Bank of Kazakhstan (NBK). This is a major step towards market legalization.
A clear separation: Investment vs. Payments.
What will be allowed: Buying, selling, and holding cryptocurrency as an investment asset on approved platforms.
What will not be allowed: Using crypto to pay for coffee or goods in an online store. Payments will remain prohibited.
A "white" exit from the "gray" zone. Currently, only about 5% of Kazakh crypto investors use licensed (within the AIFC) exchanges. The rest operate on unregulated "gray" platforms. The new law aims to legalize this huge segment, bringing it into the light and under the regulator's protection.
Control through a "whitelist." The regulator (AFSA) will compile a list of approved crypto assets for trading. This is a measure to protect inexperienced investors from outright scams.
But it's not all black and white regarding payments.
There's a loophole: The "CryptoCity" project in Alatau aims to create a pilot zone where crypto payments would be permitted.
Furthermore, the state itself is actively looking toward crypto assets: $300 million has already been allocated to form a strategic national crypto reserve, and the National Bank is considering converting part of its foreign exchange and gold reserves into crypto.
Why this path?
Kazakhstan, which became a major mining hub after China's crackdown, is trying to control and benefit from the crypto industry (through taxes, licenses, investment inflows) while safeguarding its financial system. The complete ban on payments is an attempt to maintain the sovereignty of the national currency (the tenge) and prevent capital from escaping control.
The bottom line?
Kazakhstan is choosing a regulatory model akin to some Asian countries like South Korea: crypto is a digital asset/commodity for investment and speculation, but not a payment instrument. This provides the market with long-awaited clarity and legal status, which could attract more institutional players.
Now a question for you, fellow investors:
Do you think this model – "investments yes, payments no" – is a sustainable and progressive path for a state, or is it a half-measure that will hinder real technology adoption? And can the pilot "CryptoCity" change the rules of the game in the future?
Share your thoughts in the comments! Interested to hear different viewpoints.
