Kazakhstan: The President of Kazakhstan Kassym-Jomart Tokayev has called for an urgent expansion of the country’s legal crypto operations. His remarks come as the U.S. government warms up to the crypto industry, prompting Kazakhstan to rethink its strategy.
At a recent government meeting, Tokayev stressed the importance of adapting to the evolving tech landscape. He noted that many crypto users in Kazakhstan still operate in what he terms the “gray zone.” This term refers to those who engage in crypto activities without proper regulation. Alarmingly, only about 5% of crypto investors in the country currently use regulated platforms, such as those found in the International Financial Center in Astana. These platforms include Galaxy Digital, SkyBridge Digital Finance, and Swiftex.
Tokayev made it clear that the time for action is now. “Urgently, infrastructure for broader legal circulation of digital assets should be created. Financial regulators must focus on developing the appropriate legislative framework,” he stated. His call to action highlights the need for the country to establish a solid legal foundation for cryptocurrencies.
Kazakhstan’s financial watchdog is already taking steps to combat illegal crypto exchanges. In 2024, the government shut down 36 illegal platforms that collectively handled a staggering 60 billion tenge, or approximately $112.84 million. These efforts signal the country’s commitment to regulating the crypto market and protecting investors.
In addition to shutting down illegal operations, regulators have also blocked access to over 3,500 unregistered crypto trading sites. This initiative involved collaboration with the National Security Committee and the Ministry of Culture and Information. The aim is to ensure a safer environment for crypto investors and to steer them toward legitimate platforms.
Kazakhstan stands at a crossroads. With Tokayev’s push for a robust crypto framework, the country could transform into a crypto-friendly hub in Central Asia. However, achieving this goal will require swift action and dedicated efforts from financial regulators. As the digital asset landscape continues to evolve, Kazakhstan must adapt or risk falling behind. The next steps will be crucial in determining the future of cryptocurrency in the nation.
