Kazakhstan Tightens Regulations on Cryptocurrency Transactions

Kazakhstan has enacted new legislation granting the central bank the authority to approve the types of cryptocurrencies allowed for trading on regulated exchanges, while tightening regulations on "unsecured" digital assets such as Bitcoin and Ethereum.

The law establishes a three-tier framework for digital financial assets, including stablecoins, asset-backed tokens, and electronically issued financial instruments. Platforms are required to obtain licenses, comply with risk management standards, protect investors, and undergo anti-money laundering and counter-terrorism financing supervision. The National Bank will maintain a list of approved cryptocurrencies and impose operational limits on exchanges.

This move follows a vigorous crackdown: in October 2024, Kazakhstan shut down 130 illegal exchanges, seized $16.7 million in virtual assets, and blocked over 3,500 illegal platforms.

Despite strict regulation, the country continues to pursue a controlled digital asset initiative, including licensed cryptocurrency banks and a plan to establish a national reserve fund valued at $500 million to $1 billion by early 2026.