Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Key Takeaways:
- President Tokayev announced the creation of “CryptoCity,” a pilot zone for using cryptocurrency in everyday transactions.
- CryptoCity will operate as a regulated sandbox to test the use of digital assets for purchasing goods, services, real estate, and investments.
- The initiative builds on Kazakhstan’s ongoing efforts to modernize its financial infrastructure.
Kazakhstan is preparing to launch “CryptoCity,” a pilot zone where cryptocurrencies can be used to pay for goods, services, and more.
The announcement was made by President Kassym-Jomart Tokayev during the Astana International Forum 2025, according to a May 29 statement on the official website of the president.
Kazakhstan Plans Legal Framework for CryptoCity, Crypto-Powered City in Alatau
In his remarks, Tokayev described CryptoCity as a regulated sandbox for experimenting with crypto adoption.
“We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond,” he said.
A full transcript of the speech was later published on the president’s official website.
While Tokayev did not provide many details, the initiative is the latest in Kazakhstan’s broader efforts to explore crypto use cases and integrate digital assets into its economy.
The pilot zone is part of a wider strategy to attract technology ventures and capitalize on the growth of its domestic crypto market.
Kazakhstan has been building digital financial infrastructure since launching a central bank digital currency (CBDC) pilot in February 2023. Programmability was a key feature from the beginning, planned to reduce corruption.
That same year, the Center for Interbank Settlements was transformed into the National Payment Corporation, tasked with developing the CBDC platform.
By November 2023, the country had launched the digital tenge in pilot mode with real users, including banks and their clients.
The system used blockchain-based smart contracts to facilitate programmable payments.
Banks involved in the pilot issued digital vouchers and cards to support usage.
The government also partnered with Binance to test CBDC payments with selected merchants. Binance has since expanded its footprint in Kazakhstan with local investments and a digital asset exchange.
Zhaslan Madiyev, Minister of Digital Development, told local media that officials are currently choosing a location for CryptoCity.
“Of course, the most promising place for CryptoCity is the new city of Alatau—it’s the president’s initiative,” he said.
Alatau, a research and technology hub near Kazakhstan’s southeastern border, is already home to a special economic zone and multiple science institutions. Regulators see potential synergies in adding CryptoCity to the area.
“The concept is that cryptocurrency would be used as a means of payment—to pay in restaurants and cafes, buy real estate, and make investments,” Madiyev explained. “I believe this could be a major breakthrough for the blockchain industry.”
According to Madiyev, the city is already under development. The next step is building a legal framework to allow free crypto circulation and establish crypto as a legitimate payment method.
“These conditions need to be reflected in the law,” he said.
Kazakhstan Considers “Crypto Bank” as Lawmakers Push for Stronger Oversight in Expanding Sector
Adding to the unveiling of the “CryptoCity” pilot zone by President Kassym-Jomart Tokayev, momentum is building around broader crypto reform in Kazakhstan.
Lawmakers are now calling for the establishment of a state-supported “crypto bank” to tighten regulation, protect users, and keep capital within national borders.
MP Azat Peruashev proposed the idea in Parliament, warning that the absence of a clear legal infrastructure has driven most crypto activity into the shadows.
Citing reports that over 90% of transactions occur outside the legal sector, he argued that a crypto bank could serve as a state-regulated exchange and custody platform, providing a safer alternative to illegal schemes and scam coins.
Prime Minister Olzhas Bektenov confirmed that the government is exploring such institutions as part of its broader digital asset strategy.
Crypto banks, he explained, could support exchange, storage, and transaction services, backed by licensed operators under the Astana International Financial Centre.
The push comes amid growing crypto volumes and rising enforcement. While licensed trading hit $1.4 billion in 2024, most of the $4.1 billion in activity last year occurred off the books.
In response to that, authorities shut down 36 unlicensed platforms and blocked thousands of sites, but lawmakers say more structural reform is urgently needed.
