Kazakhstan is making significant strides toward becoming a regulated hub for cryptocurrency. President Kassym-Jomart Tokayev has emphasized the urgent need to reform the country’s digital asset industry, citing concerns over the dominance of unregulated platforms. Currently, only about 5% of crypto investors in Kazakhstan use legally registered exchanges, while the vast majority rely on unlicensed services operating in a legal grey area.

To address this issue, Tokayev has urged financial regulators to develop a comprehensive legal framework that supports a safer and more structured crypto ecosystem. This move is part of Kazakhstan’s broader strategy to foster digital finance growth while ensuring investor protection. The government has already intensified efforts to crack down on illegal operations, shutting down 36 unlicensed crypto exchanges in 2024, which collectively handled 60 billion tenge ($112.84 million) in transactions. Additionally, authorities have blocked over 3,500 unregistered trading sites in coordination with the National Security Committee.

The government’s actions signal a shift in Kazakhstan’s approach to digital assets. Once known as a crypto mining hotspot due to its low electricity costs, the country now aims to establish a fully regulated environment for trading and investment. By enhancing oversight and improving infrastructure, Kazakhstan seeks to attract institutional investors and strengthen its position in the global crypto economy.

As the international regulatory landscape for cryptocurrencies continues to evolve, Kazakhstan is positioning itself as a key player in shaping the future of digital finance. By balancing stricter enforcement with supportive policies, the country is moving towards becoming a crypto-friendly nation that fosters innovation while minimizing risks for investors.