1. Introduction

1.1 The Overview of Kazakhstan

The Republic of Kazakhstan, commonly known as Kazakhstan, spans across both Europe and Asia, with most of its territory located in Asia and a small part in Europe. It declared independence on December 16, 1991, and shares borders with Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan, while also bordering the Caspian Sea across from Iran and Azerbaijan. As the world’s largest landlocked country, Kazakhstan comprises 14 provinces and 3 cities with special status. The national language is Kazakh, and both Kazakh and Russian are official languages. The national currency is the tenge. Kazakhstan stands out in Central Asia for its relatively rapid economic development, political stability, and sound social order. Notably, as early as 2021, Kazakhstan ranked third globally in Bitcoin mining hash rate. According to the State Revenue Committee of Kazakhstan, by March 2025, a total of 75 crypto mining companies had been officially registered in the country.

1.2 Definition of Digital Assets

Under the Law on Digital Assets of the Republic of Kazakhstan, a digital asset refers to property created in digital form and assigned a digital code. This includes items that utilize cryptography and computational tools. It is not considered a currency or legal tender and is instead recorded and secured via the immutability of distributed ledger technology.

According to interpretive provisions issued by the Astana International Financial Centre (AIFC), a digital asset represents value in digital form and has the following characteristics: (1) It can be traded digitally and serve as: a medium of exchange or; a unit of account or; a store of value; (2) It can be exchanged for legal tender but is not issued or backed by any government; (3) It operates solely based on consensus within the digital asset user community; (4) It must be distinguished from legal tender and electronic money.

To remain consistent with official terminology used in Kazakhstan, this article will refer to such assets as “digital assets.”

2. Crypto Tax Policies and Their Developments

2.1 General Overview of the Tax System

Kazakhstan’s tax laws are primarily governed by the Tax Code of the Republic of Kazakhstan and other regulatory legal documents issued in accordance with it. In 2017, Kazakhstan undertook tax reform and introduced a new version of the Tax Code, which came into effect in 2018. Additional tax-related regulations include the Transfer Pricing Law, the Administrative Offenses Law, among others. Moreover, state authorities like the Ministry of Finance and the State Revenue Committee are empowered to issue normative documents within their jurisdiction to further clarify the application of specific provisions in the Tax Code.

The Kazakh tax authorities consist of the State Revenue Committee and regional tax offices. The State Revenue Committee is responsible for ensuring tax collection and providing fiscal oversight, while also managing tax and customs matters. Local tax offices must operate with official codes approved by the Kazakh government and include provincial offices, those in Astana and Almaty, district offices, city-level offices, and regional branches of the State Revenue Committee. Where special economic zones (SEZs) are established, dedicated tax offices may also be set up within them. All tax offices operate under the leadership of the State Revenue Committee.

Kazakhstan’s main taxes and fees currently include corporate income tax, personal income tax, value-added tax (VAT), excise duties, social tax, land tax, vehicle tax, property tax, excess profits tax, and other related charges.

2.1.1 Corporate Income Tax

(1) Resident Enterprises: An enterprise is considered a resident if it is established under Kazakh law or under foreign law but has its actual or effective management located within Kazakhstan. Resident enterprises are taxed on their global annual income. The standard corporate income tax rate is 20%, unless otherwise stated.

(2) Non-Resident Enterprises: In contrast to resident entities, non-resident enterprises are those not qualifying as “residents.” Additionally, if Kazakhstan has signed a international taxation convention that designates an enterprise as a non-resident, then the tax rules for non-resident enterprises apply—even if local law would otherwise classify it as a resident. Non-residents are subject to tax only on income sourced within Kazakhstan. If a non-resident operates through a permanent establishment (PE) in Kazakhstan, it must also pay tax on foreign income that is effectively connected to that PE. The standard corporate income tax rate is 20% unless otherwise specified. Additionally, the net income of a non-resident legal entity’s PE—after paying 20% CIT—is subject to a 15% branch profit tax, which may be reduced under applicable DTTs. Therefore, if no DTT relief applies, the effective tax rate on PE income is 32%.

2.1.2 Personal Income Tax

(1) Resident Individuals: These are individuals who either permanently reside in Kazakhstan or have their center of vital interests in the country. Permanent residence means spending at least 183 days (including days of arrival and departure) in Kazakhstan within any continuous 12-month period before the end of the tax year. However, for individuals involved in investment activities within the AIFC, the threshold is only 90 days. A center of vital interests refers to individuals who are Kazakh citizens or residents, have spouses or close relatives living in Kazakhstan, and maintain a home or family in Kazakhstan that is available for use by themselves or their family at any time.Resident individuals are taxed on all income from both domestic and foreign sources. The taxable income is calculated as total income minus pre-tax deductions (excluding exempt and non-taxable income), and a flat rate of 10% applies.

(2) Non-Resident Individuals: The Tax Code does not provide a detailed definition of non-resident taxpayers, but any individual not meeting the criteria for residency is considered a non-resident. Non-residents are taxed on all income derived from within Kazakhstan, generally at a 20% rate. Typically, non-residents are not allowed to make pre-tax deductions on income sourced from Kazakhstan, unless specifically permitted.

2.1.3 Value-Added Tax (VAT)

Under Kazakhstan’s Tax Code, VAT payers include: (1) Individual entrepreneurs, private practitioners, resident companies (excluding public institutions and state-run secondary schools), and non-resident enterprises conducting business through branches in Kazakhstan, if registered for VAT; (2) Individuals or entities importing goods into Kazakhstan under the Customs Code of the Eurasian Economic Union and the Customs Code of Kazakhstan; (3) Foreign companies providing electronic services to users in Kazakhstan. Standard VAT rate is 12% on taxable turnover and taxable imports. Certain transactions may be subject to a zero VAT rate.

2.2 Crypto Tax Policy

In June 2021, Kazakhstan's President Kassym-Jomart Tokayev signed an amendment to the Tax Code introducing taxation on electricity used for digital asset mining. This came into effect on January 1, 2022. Starting from January 1, 2024, the electricity tax rate for digital asset mining has been standardized at 2 tenge per kilowatt-hour. If a miner uses self-generated electricity or renewable energy sources not connected to the national grid, the rate is 1 tenge per kilowatt-hour. In cases where there is no metering device installed to measure electricity consumption for digital asset mining—or if the device is malfunctioning—the electricity usage is calculated based on the maximum capacity load.

Companies engaged in the digital asset industry in Kazakhstan are also subject to a corporate income tax of 20%. For tax purposes, annual gross income must be adjusted in accordance with the Tax Code: actual revenue from the sale of digital assets is not included in gross income. Instead, taxable income is calculated based on the number of digital assets acquired and the asset value published daily by either the Kazakhstan tax authority or the Astana International Financial Centre. Expenses not related to income generation, such as digital asset mining costs, are not deductible.

Individuals who sell digital assets in Kazakhstan must declare any income gained from capital appreciation as personal income. For residents, the personal income tax rate is 10%; for non-residents, it is generally 20%.

According to VAT rules in Kazakhstan, digital assets distributed among participants in a mining pool are not considered taxable turnover for VAT purposes. In addition, revenue from the sale of digital assets is exempt from VAT.

As of March 2025, there were 75 officially registered mining companies operating in Kazakhstan. According to data from the State Revenue Committee, over the past three years, total taxes collected from these companies amounted to 17.7 billion tenge, including 11.6 billion tenge from digital asset mining taxes. Notably, a tax audit conducted in 2024 uncovered several violations, leading to an additional 4.9 billion tenge in tax collections, including 2.3 billion tenge from mining taxes and 2.6 billion tenge from corporate income tax. Authorities also found that some individuals underreported income from selling digital assets, involving 4.3 billion tenge in personal income tax. These findings prompted the State Revenue Committee to further strengthen its oversight and auditing of the entire digital asset lifecycle.

3.Digital Asset Regulatory Policies and Recent Developments

3.1 Digital Asset Regulatory Policies

The Astana International Financial Centre (AIFC) is a designated zone within the city of Astana, the boundaries of which are determined by the President. Within this zone, a special legal regime applies to financial activities. The definition and classification of digital assets—as well as the procedures and conditions for issuing (excluding mining), offering, circulating, and storing digital assets—are determined by AIFC legislation. The requirements for digital asset exchanges and the procedures for obtaining licenses are also governed by the AIFC legal framework.

On January 1, 2018, the Astana Financial Services Authority (AFSA) was established as the independent regulatory body within the AIFC. It supervises financial and ancillary services, as well as capital market activities, conducted by AIFC participants. It also oversees companies engaged in non-financial services that are registered with the AFSA. Its specific duties include:

1. Drafting laws related to financial services and associated activities within the AIFC, and submitting them for public consultation and approval;

2. Issuing AIFC acts related to financial regulation;

3. Registering, certifying, and licensing AIFC participants;

4. Maintaining the official register of AIFC participants;

5. Monitoring and supervising AIFC participants and taking appropriate regulatory measures.

In 2023, Kazakhstan passed the Law on Digital Assets, establishing the legal foundation for the issuance and circulation of digital assets and the development of mining activities. The law clarified that the aim of national regulation in the digital asset space is to foster the issuance and circulation of digital assets and mining activities within Kazakhstan, promoting economic growth and increasing competitiveness.

Overall, Kazakhstan maintains an open and supportive stance toward digital assets. The country continues to enhance its regulatory framework and has adopted a “pilot-first” strategy in designated zones to encourage technical experimentation and innovation in digital models, thereby driving the growth of the digital economy.

3.2 Latest Developments in Digital Asset Regulation

Entering 2025, Kazakhstan has accelerated the construction of its digital asset regulatory framework and continued to refine relevant laws and systems. In a series of speeches delivered during cabinet meetings and parliamentary sessions, the President issued clear directives, prompting relevant agencies to swiftly formulate policy guidelines and actively disclose progress to the public. While Kazakhstan is focused on improving its regulatory framework, it also emphasizes systematic infrastructure development for digital assets—particularly in areas like the digital tenge, service providers, and crypto payments.

On January 27, 2025, the National Bank of Kazakhstan (NBK) released its annual report titled Development of the National Digital Financial Infrastructure (NDFI). According to the report, the focus in 2024 was on creating new components of the payment infrastructure and improving existing systems to ensure safe and transparent interaction among market participants. As part of the second phase of the “Digital Tenge” project in 2024, new use cases for digital assets in public and crypto payments were tested, laying the groundwork for deeper integration into the national economy. The year 2025 marks the final stage of the phased rollout of national digital assets. The report outlines two key goals: First, the implementation of an appropriate regulatory and legal framework to fully launch national digital assets and unlock their benefits. The legislative framework for IT services is expected to be finalized in 2025, building on work carried out in 2023 and 2024. Second, pilot testing of cross-border digital asset payments with all stakeholders fully integrated into the ecosystem.

On January 28, 2025, the President of Kazakhstan stated during an extended cabinet meeting: “In our country, such (digital) assets may only be legally traded on the AIFC Digital Asset Exchange. However, according to experts, only 5% of Kazakh digital asset investors use the platform, while the rest operate in the so-called ‘gray zone’. It is urgent that we build infrastructure for broader legal circulation of digital assets. Financial regulators should begin participating in the development of an appropriate legal framework.” In response, the AIFC stated that all presidential directives would be implemented within the existing general and special regulatory frameworks of the center. The National Bank of Kazakhstan, when asked by media about its role, confirmed it had already begun efforts to amend relevant legislation. The bank aims to create a standardized environment for digital asset circulation across the country, enhancing transparency and protecting citizens’ interests. However, it is not expected that digital assets will be used as a legal means of payment.

In addition to regulating digital assets, the National Bank of Kazakhstan plans to introduce Digital Financial Assets (DFA) into circulation, unlocking new opportunities for innovative financial instruments such as asset tokenization. The bank also noted that detailed mechanisms for digital asset operations and circulation conditions would be reflected in the upcoming amendments to banking legislation.

On May 22, 2025, Berik Sholpankulov, Deputy Governor of the National Bank of Kazakhstan, delivered a briefing on the development of the national digital financial infrastructure and approaches to digital asset regulation. According to his report, based on the President’s instructions, the National Bank—together with other government bodies—has developed a set of legislative amendments to provide a legal basis for digital asset circulation. The proposed amendments include two key aspects: (1) The launch of digital financial assets and a legal definition of their status; (2) The introduction of a licensing regime for crypto exchange service providers, aimed at regulating transactions involving unsecured digital assets. Alongside legislative changes, the National Bank is also establishing a regulatory sandbox for digital assets. This sandbox will allow market participants to test innovative services and technologies. Yerlan Ashykbekov, Director of the Payment Systems Department at the National Bank, announced that Kazakhstan will formally introduce licensed digital asset service providers into its legal system. These providers will be regulated by the National Bank, while exchanges operating within the AIFC will continue to be supervised separately by the AIFC financial authority.

To explore more possibilities in crypto payments, Kazakhstan has also introduced several key initiatives. First, it launched an experimental pilot zone. On May 29, 2025, the President of Kazakhstan announced: “We plan to create an innovative pilot zone called CryptoCity, where digital assets can be used to purchase goods, services, and even more.” Second, the government launched the “Crypto Card (криптокарты)” project. The crypto card allows consumers to make cashless payments linked to a custodial wallet on a licensed exchange. This solution enables the secure and convenient integration of digital asset circulation into the existing payment infrastructure. Under this mechanism, when a customer sells digital assets on the AIFC crypto market, the value is instantly credited to the crypto card—which is linked to a standard payment card connected to the customer’s bank account. After the crypto is sold, payments are settled in fiat currency.

Notably, during this briefing, several pilot programs were announced to be implemented under the coordination of the National Bank. These include: (1) Issuing stablecoins backed by national currency (including the digital tenge) for use in digital asset settlement; (2) Tokenization of financial assets, real estate, and issuance of tokenized securities; (3) Establishing an accounting and storage system for collateralized digital financial assets; (4) Organizing crypto asset exchange services and secure storage of crypto assets.

4. Conclusion

Kazakhstan’s progress in the digital asset sector reflects its open-minded attitude and strong support for this emerging industry. The country continues to take action to improve its regulatory framework for digital assets, while also advocating at the policy level for a moderate loosening of regulation to stimulate innovation and growth in the sector. These efforts aim to build a digital asset ecosystem that is both compliant and competitive on the global stage, showcasing Kazakhstan’s strategic ambition to become a digital financial hub in Central Asia. At the same time, Kazakhstan is committed to building a modern digital asset infrastructure that ensures digital assets can be effectively integrated into the national economy. These initiatives not only lay a solid foundation for the stable growth of the digital asset sector but also provide strong support for Kazakhstan to gain a foothold in the global digital economy. With the gradual implementation of innovative legal frameworks and digital infrastructure, Kazakhstan is well-positioned to become a regional leader in the digital asset space, further promoting the diversification of its economy and enhancing its international competitiveness.

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