Kazakhstan President Kassym-Jomart Tokayev called for an urgent expansion of the country’s crypto infrastructure during a government meeting.
“The turn towards the widespread use of cryptocurrencies and other digital assets has emerged in the financial sector,” President Tokayev said on 28 January 2025.
“The development of artificial intelligence is becoming a fundamental factor, and competition between leading technological powers is intensifying in this area,” he added. “In such conditions, we need to have a clear strategy of action aimed at overcoming the serious challenges of the new era.”
Kazakhstan expands crypto infrastructure!
President Tokayev pushes for urgent legal reforms to boost digital assets.
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Kazakhstan has emerged as a key player in the cryptocurrency industry, particularly in mining.
Kazakhstan quickly became the second-largest Bitcoin mining hub globally. It accounts for nearly 18% of Bitcoin’s total hash rate at its peak. Its low electricity costs and surplus energy from coal-fired power plants attracted miners from around the world.
Despite these advancements, only about 5% of Kazakhstan’s crypto investors currently use regulated platforms like Galaxy Digital, SkyBridge Digital Finance, and Swiftex at the AIFC.
The majority operate in what Tokayev described as the “gray zone,” exposing them to risks associated with unregulated markets.
To address this issue, Tokayev emphasized the need for financial regulators to develop a robust legal framework that encourages broader legal participation in the crypto ecosystem.
Tightened Crypto Regulations In 2024, Kazakh Shut Down 36 Crypto Exchanges
Contrary to the President’s call for a crypto infrastructure, Kazakhstan recently implemented stricter regulations on crypto activities throughout 2024.
According to the government website, in 2024, 36 illegal crypto exchanges were shut. A total turnover of 60 Billion Tenge were destroyed. Furthermore, assets in the amount of $ 4.8 million (about 2.5 Billion Tenge) were frozen and confiscated.
According to the government, “Such entities (illegal crypto exchanges) do not identify their clients and do not identify suspicious transactions. Therefore, their services are often used by cyber crooks and drug traffickers.”
To capitalize on the growing crypto industry, Kazakhstan introduced a tax framework targeting miners.
However, enforcement challenges persisted due to non-compliance by many operators.
Explore: Kazakhstan Tightened Crypto Regulations In 2024, Shut Down 36 Crypto Exchanges
Mastercard Expands Crypto Solutions To Kazakhstan
Mastercard has launched Crypto Credential solution for the people of UAE and Kazakhstan in the EEMEA region.
“Crypto is maturing, and we’re all about making it accessible, secure, and trustworthy,” said Gaurang Shah, Mastercard’s EVP of Core Payments for EEMEA. With this move, Mastercard is doubling down on its vision to transform how people interact with digital assets.
The inclusion of the UAE and Kazakhstan marks an important milestone for the Crypto Credential network as they join a growing list of global markets already benefitting from this technology. This network spans North America, Europe, Latin America and Asia Pacific.
Explore: Mastercard Expands Crypto Solutions To UAE And Kazakhstan
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