Kassym-Jomart Tokayev signed a decree aimed at forming a "modern and transparent ecosystem of digital financial services" in the country. The document, prepared by the Ministry of Artificial Intelligence and Digital Development jointly with the National Bank and the Astana International Financial Centre, sets the direction for a large-scale transformation of the crypto industry in the republic.
A key point of the decree is the development of mechanisms for using digital assets and stablecoins for cross-border settlements. This involves providing businesses with legal channels for export-import operations within a regulated framework — a direct response to the needs of companies operating under sanctions restrictions and traditional currency volatility.
Legalization and Tax Incentives
A separate section is dedicated to bringing crypto asset transactions into the legal field. The authorities propose a mechanism for the voluntary disclosure of digital assets previously held on foreign unregulated platforms, followed by their transfer to the platforms of Kazakhstani providers. For individuals, income from digital asset transactions conducted through the country's regulated infrastructure will be exempt from personal income tax. This is a powerful incentive for capital repatriation and attracting new participants to the local market.
Mining on Associated Gas and Infrastructure
The decree also authorizes the use of associated petroleum and natural gas at fields for autonomous electricity generation. If these resources are not required for state needs, they can be directed towards cryptocurrency mining. This solution addresses two tasks simultaneously: utilization of associated gas, which is often flared, and provision of cheap energy for mining facilities, which is critical for the industry's profitability.
Additionally, the document provides for the development of tokenized financial instruments and national trade blockchain infrastructure. The implementation of all initiatives will be enshrined in a separate action plan with clear deadlines and responsible executors.
Expert Commentary: This decree is not just a formal step, but a well-thought-out strategy that could make Kazakhstan one of the most progressive jurisdictions in Central Asia. The combination of tax benefits for individuals, legalization of cross-border settlements, and the use of associated gas for mining creates a unique economic model. Considering the recent announcement by the Central Bank about forming a state crypto reserve of up to $1 billion, we are witnessing a consistent attempt to build a full-fledged digital economy, rather than just regulating individual segments. The market should closely monitor how these norms are implemented in practice — Kazakhstan's success could serve as an example for other developing countries.