Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Kazakhstan has taken a decisive step toward mainstreaming digital assets, approving the use of U.S. dollar–pegged stablecoins for regulatory fee payments in what officials describe as a first for the region.
The Astana Financial Services Authority (AFSA) announced the initiative during Astana Finance Days 2025, unveiling a framework that allows participants of the Astana International Financial Centre (AIFC) and applicants seeking registration or authorization to settle fees in stablecoins.
Bybit Becomes First Exchange to Join Kazakhstan’s Regulated Stablecoin Pilot
Bybit Limited became the inaugural signatory to a Multilateral Memorandum of Understanding (MMoU), signed by AFSA Chief Executive Officer Evgeniya Bogdanova and Bybit Chief Operating Officer Mazurka Zeng at the event.
Under the framework, Digital Asset Service Providers (DASPs) licensed by AFSA to operate money services or trading facilities in relation to digital assets may participate as “Providers.”
These providers act as agents for payers, executing stablecoin transactions and remitting the fiat equivalent to AFSA’s designated bank account. Participation requires signing an MoU with AFSA and meeting eligibility criteria.
The names of approved providers will be published on the regulator’s website.
Bogdanova said the project represents “a first-of-its-kind regulatory framework for payments in stablecoins in the region,” positioning the AIFC as a hub for digital finance and innovation.
Bybit’s Zeng described the move as a step toward expanding Kazakhstan’s payment ecosystem with “compliant, secure, and frictionless solutions built for digital assets.”
The role of stablecoins in the crypto economy has expanded rapidly. Market capitalization reached an all-time high of $251.7 billion in mid-June 2025, with fiat-backed tokens such as Tether and USD Coin accounting for the majority of circulation and trading volumes.
Kazakhstan’s decision follows a broader effort to formalize the country’s digital asset sector. In September 2024, Bybit and Binance secured full authorization from AFSA to operate as Digital Asset Trading Facilities (DATFs), marking a major milestone for global exchanges in the Central Asian market.
Binance also obtained ISO certifications and external audit approvals, becoming the first DASP to receive AFSA consent for a full regulatory license.
With these approvals, the exchanges can now offer trading, investment, and custody services in Kazakhstan and the wider Commonwealth of Independent States (CIS) region.
The country has simultaneously tightened oversight of unlicensed operators. Over the past two years, the Financial Monitoring Agency has blocked nearly 1,000 illegal platforms and frozen crypto tied to pyramid schemes and scams worth more than $75 million.
In January 2025, authorities shut down several unregistered exchanges accused of enabling money laundering and cybercrime.
Kazakhstan is also advancing its central bank digital currency (CBDC) program. The National Bank began pilot testing the digital tenge in 2021 and completed its first retail payments in 2023.
Officials have confirmed plans for a full rollout by the end of 2025, positioning the token as a third form of currency alongside cash and non-cash payments. The CBDC will feature offline functionality and aims to modernize domestic payment systems.
Authorities argue that strict oversight has laid the groundwork for compliant operators to thrive. By pairing regulation with innovation, Kazakhstan is seeking to establish the AIFC as a credible hub for digital assets.
Kazakhstan Pushes Ahead With Crypto Investments, State Reserve, and “CryptoCity” Pilot
Kazakhstan is stepping deeper into digital assets, unveiling a series of initiatives that position the country as a regional testing ground for crypto integration.
In July, National Bank Chairman Timur Suleimenov confirmed plans to channel part of Kazakhstan’s gold and foreign exchange reserves, along with National Fund assets, into crypto-linked investments.
The move mirrors strategies used by sovereign wealth funds in the U.S., Norway, and the Middle East, which have gained limited exposure through crypto ETFs or related equities.
Suleimenov said the size of Kazakhstan’s allocation is still under discussion, cautioning that volatility remains a concern despite the potential for high returns.
At the same press briefing, Suleimenov outlined plans for a state crypto reserve. The fund will store assets confiscated in criminal cases and could be supplemented by proceeds from state-backed mining operations.
Authorities said the reserve will be managed under international sovereign fund standards, with a focus on transparency and sustainability.
Kazakhstan has also signaled regulatory caution, proposing new penalties for gray-market digital asset transactions. Still, officials continue to highlight the potential economic benefits of crypto adoption.
In May, First Vice Minister of Digital Development Kanysh Tuleushin argued in a state op-ed that mining could modernize Kazakhstan’s energy infrastructure.
He cited the “70/30 project,” in which foreign investors upgrade thermal plants, reserving 70% of output for the national grid and 30% for miners.
Separately, President Kassym-Jomart Tokayev announced “CryptoCity,” a pilot zone in Alatau where cryptocurrencies could be used for everyday payments. The initiative, revealed during the Astana International Forum, will serve as a regulated sandbox to test crypto adoption at the consumer level.
Together, the initiatives reflect Kazakhstan’s effort to balance regulatory control with ambitions to become a Central Asian hub for digital assets.
