As of March 2025, official records indicate 75 registered entities operating within Kazakhstan’s mining sector.
Author: FinTax
1. Introduction
1.1 Country Overview
The nation of Kazakhstan, a transcontinental territory primarily situated in Asia with a smaller portion extending into Europe, formally declared its independence on December 16, 1991. This landlocked country, the world’s largest, shares borders with Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan. The Caspian Sea separates it from Iran and Azerbaijan. Comprising 14 regions and 3 major cities, Kazakhstan designates Kazakh as its national tongue, while both Kazakh and Russian serve as official languages. The tenge is the official currency. Kazakhstan is experiencing notable economic progress, and enjoys a comparatively stable political climate and social order. Notably, by 2021, Kazakhstan had risen to become the third-largest contributor to Bitcoin mining hashrate globally. Data from the Kazakhstan State Revenue Committee confirms that, as of March 2025, seventy-five (75) mining firms are officially registered within the country.
1.2 Understanding Digital Assets
Kazakhstan’s legal framework, specifically the Law “On Digital Assets,” defines digital assets as properties represented in an electronic format and assigned a specific digital code. These assets, often utilizing cryptography and computational methods, do not function as legal tender or units of account. Their integrity and security are maintained through distributed ledger technology.
The Astana International Financial Centre (AIFC) provides further interpretation, characterizing digital assets as digital representations of value possessing key attributes: (1) Digital exchangeability and potential use as (a) a medium of exchange, (b) a unit of account, or (c) a store of value; (2) Exchangeability for fiat currency, although not issued or guaranteed by any government; (3) Functionality dependent on consensus within the digital asset user community; and (4) Distinction from both legal tender and electronic money.
To maintain consistency with national standards, this analysis will consistently employ the term “digital assets.”
2. Crypto Tax and Regulatory Environment
2.1 Overview of the Tax System
Kazakhstan’s taxation system is structured around the Tax Code and associated regulatory documents. A significant tax reform in 2017 led to the enactment of a revised Tax Code, which took effect in 2018. Additional components of the regulatory framework include legislation on transfer pricing and administrative penalties. The Ministry of Finance and the State Revenue Committee, as government entities, possess the authority to issue supplementary regulations to clarify and implement specific provisions of the Tax Code and related laws.
The State Revenue Committee and local tax agencies comprise the Kazakhstan tax administration. The State Revenue Committee is tasked with ensuring tax compliance and providing financial guidance, as well as overseeing taxation and customs management. Local tax agencies, authorized by the Kazakh government, encompass state regional offices, branches in Astana and Almaty, district and city administrative bodies, and cross-regional units of the State Revenue Committee. Special Economic Zones may establish their own tax authorities. The State Revenue Committee oversees the entire tax administration.
Kazakhstan’s current tax structure includes corporate income tax, personal income tax, value-added tax (VAT), excise tax, social tax, land tax, vehicle tax, property tax, excess profits tax, and various other fees.
2.1.1 Corporate Income Tax
Resident corporations are those established under Kazakhstan law or those established under foreign law but effectively managed within Kazakhstan. These entities are taxed on their global income. The standard corporate income tax rate is 20%, unless otherwise specified.
Non-resident corporations, conversely, are defined as those not meeting the criteria for residency. Even if a company is deemed a resident taxpayer under the Tax Code, if an international tax treaty ratified by Kazakhstan designates it as a non-resident, the provisions applicable to non-resident entities will prevail. Non-resident corporations are taxed solely on income derived from sources within Kazakhstan. If a non-resident operates in Kazakhstan through a permanent establishment, income from foreign sources connected to that establishment is also subject to corporate income tax. The standard corporate income tax rate for non-resident corporations without a permanent establishment is typically 20%. Furthermore, a 15% branch profits tax is levied on the net income of a permanent establishment of a non-resident legal entity (after the 20% corporate income tax deduction), potentially subject to reduction or exemption under applicable Double Taxation Avoidance Agreements (DTTs). Without DTT relief, the effective tax rate on permanent establishment income for non-resident legal entities is 32%.
2.1.2 Personal Income Tax
Resident taxpayers are individuals who maintain a permanent residence in Kazakhstan and whose primary interests are centered there. Permanent residence is defined as residing in Kazakhstan for at least 183 days (including arrival and departure dates) within any consecutive 12-month period at the end of the current tax year. For individuals engaging in investment activities within the Astana International Financial Centre, a minimum stay of 90 days (including arrival and departure) within any consecutive 12 months qualifies as permanent residence. The center of vital interests is defined as an individual being a citizen of Kazakhstan, holding a Kazakhstan residence permit, having a spouse or close relatives residing in Kazakhstan, and having a family and residence in Kazakhstan available at any time. The tax base encompasses all income earned by the individual from sources both within and outside Kazakhstan. After subtracting permissible deductions, taxable income is taxed at a flat rate of 10%.
Non-resident taxpayers are those who do not meet the residency criteria for personal income tax. Non-resident individuals are required to pay personal income tax on all income originating from Kazakhstan, typically at a rate of 20%. Pre-tax deductions are generally not permitted for non-resident individuals unless specifically provided for.
2.1.3 Value Added Tax
Kazakhstan’s Tax Code identifies VAT taxpayers as: 1) self-employed individuals, private practitioners, resident corporations (excluding state-owned institutions and state secondary education institutions), and non-resident corporations operating through VAT-registered branches in Kazakhstan; 2) Importers of goods into Kazakhstan, as defined by the Customs Code of the Eurasian Economic Union Customs Union and the Customs Law of the Republic of Kazakhstan; and 3) Foreign entities providing electronic services to Kazakhstan. A 12% VAT rate applies to taxable turnover and taxable imports, with a zero VAT rate applied to certain specific transactions.
2.2 Cryptocurrency Tax Policy
In June 2021, President Kassym-Jomart Tokayev approved amendments to the Tax Code concerning the taxation of digital asset mining. Effective January 1, 2022, digital asset miners are taxed on electricity consumption during the mining process. As of January 1, 2024, a standardized tax rate of 2 tenge/kWh applies to electricity used for digital asset mining. When utilizing self-generated electricity or renewable energy sources not connected to Kazakhstan’s unified power grid, a rate of 1 tenge/kWh is applied. In the absence of or failure of power consumption monitoring equipment for digital asset mining, power consumption is estimated based on maximum power load.
Companies operating in Kazakhstan’s digital asset sector are also subject to a 20% corporate income tax. When calculating taxes, a company’s annual gross income requires adjustments as stipulated by tax law. Income from the sale of digital assets is not included in the annual total income, while taxable income is calculated by multiplying the quantity of digital assets obtained by the taxpayer by the value of digital assets announced daily by the Kazakhstan tax authorities or the Astana International Financial Center. Expenses unrelated to taxable income, including digital asset mining expenses, are not deductible.
Individuals selling digital assets in Kazakhstan must declare capital gains for personal income tax purposes. The personal income tax rate is 10% for residents and typically 20% for non-resident individuals.
According to Kazakhstan’s VAT regulations, digital assets distributed among individuals engaged in digital asset mining activities within a digital mining pool are not subject to VAT. Furthermore, turnover from the sale of digital assets is VAT-exempt.
As of March 2025, 75 mining entities are officially registered in Kazakhstan. The Kazakhstan State Revenue Committee reports that these companies have collectively contributed 17.7 billion tenge in various taxes over the past three years, including 11.6 billion tenge in taxes related to digital asset mining. A 2024 tax audit revealed irregularities, resulting in the assessment of an additional 4.9 billion tenge in taxes and fees, comprising 2.3 billion tenge in digital asset mining taxes and 2.6 billion tenge in corporate income tax. In addition, evidence suggested that some citizens underreported income from digital asset sales, potentially involving 4.3 billion tenge in personal income tax. These findings prompted the Kazakhstan State Revenue Committee to enhance oversight and scrutiny of the entire digital asset ecosystem.
3. Digital Asset Regulation: Policies and Trends
3.1 Digital Asset Regulatory Policy
The Astana International Financial Centre (AIFC) is a designated area within Astana governed by a distinct legal framework for financial activities. The AIFC Act defines the concepts and types of digital assets, as well as the processes and conditions for issuing, placing, circulating, and storing digital assets within the AIFC (excluding digital asset mining). The AIFC Act also sets the standards and licensing procedures for digital asset exchanges.
The Astana Financial Services Authority (AFSA), established on January 1, 2018, serves as an independent regulatory body within the Astana International Financial Centre, overseeing participants offering financial and related services, as well as capital market activities. The AFSA also regulates companies registered with the Authority engaged in non-financial services. Its responsibilities encompass: 1) drafting laws for the center’s institutions regarding the supervision of financial services and related activities, submitting them for public discussion and approval; 2) passing bills related to supervising financial services and related activities; 3) registering, certifying, and licensing participants; 4) maintaining a list of center participants; 5) monitoring and supervising participant activities, and taking regulatory action.
Kazakhstan’s Digital Assets Law, enacted in 2023, provides the legal foundation for digital asset issuance, circulation, and mining activities. The legislation clarifies that the aim of state regulation in the digital asset field is to foster economic growth and enhance competitiveness by promoting digital asset issuance, circulation, and digital asset mining within the Republic of Kazakhstan.
Overall, Kazakhstan demonstrates a positive policy stance towards digital assets, actively refining its regulatory framework and employing a regional pilot strategy that leverages “first-mover advantage” to encourage technological trials and model innovation, thereby promoting the development of the digital economy.
3.2 Recent Developments in Digital Asset Regulation
As of 2025, Kazakhstan has intensified its efforts to establish a comprehensive digital asset regulatory framework, furthering the development and refinement of pertinent laws and regulations. A series of pronouncements from the president at extended government meetings and the National Assembly spurred prompt responses from relevant departments, which actively developed policy guidelines and regularly updated the public on policy implementation. Alongside improving the regulatory framework, Kazakhstan emphasizes the systematic development of digital asset infrastructure, prioritizing key areas such as the digital tenge, trading service providers, and encrypted payments.
On January 27, 2025, the National Bank of Kazakhstan (NBK) published its annual report, “Development of the National Digital Financial Infrastructure (NDFI).” The report highlighted that NDFI development in 2024 focused on creating new payment infrastructure components and improving existing systems to ensure secure and transparent interaction between market participants. Additionally, as part of the second phase of the “Digital Tenge” project in 2024, new use cases for digital assets in public and crypto payments were tested, paving the way for their full integration into the national economy. 2025 marks the final year of the phased launch of the national digital asset. The report outlines the direction for the “Digital Tenge” project in 2025: First, an appropriate regulatory and legal framework is needed to fully implement the national digital asset and promote its advantages, with plans to approve the legislative framework for information technology services based on the work in 2023 and 2024. Second, the basic scheme for cross-border payments of digital assets will be tested in the context of full integration with all participants in 2025.
During an expanded government meeting on January 28, 2025, the President of Kazakhstan stated that digital assets can only be legally traded on the AIFC Digital Asset Exchange. He noted experts’ estimates that only 5% of Kazakhstan’s digital asset investors use the center’s platform, with the remainder operating in the “gray area.” He stressed the imperative to establish infrastructure for broader legal circulation of digital assets and called for financial regulators to actively participate in formulating a suitable legal framework. In response, the AIFC pledged to implement the president’s instructions within its existing powers. The National Bank of Kazakhstan, in response to media inquiries, announced that they have begun promoting legislative amendments to create a standardized environment for digital asset circulation nationwide, aiming to ensure transaction transparency and protect citizen interests, while not intending to use digital assets as a means of payment.
Beyond regulating digital assets, the National Bank of Kazakhstan plans to introduce digital financial assets (DFA) into circulation, opening up new opportunities for innovative financial instruments, including asset tokenization. The department further clarified that the detailed operating mechanisms of the digital asset market and the conditions for digital asset circulation will be outlined in the revised banking law.
On May 22, 2025, Deputy Governor of the National Bank of the Republic of Kazakhstan, Berik Sholpankulov, delivered a briefing on the development of the national digital financial infrastructure and the regulatory approach to digital assets. He reported that the National Bank, in conjunction with relevant government bodies, has drafted legislative amendments to establish a legal foundation for digital asset circulation. These amendments encompass two primary components: the introduction of digital financial assets and the clarification of their legal status, and the regulation of unsecured digital asset trading through the issuance of licenses to crypto exchange service providers. Concurrently with these legislative initiatives, the National Bank is establishing a digital asset regulatory sandbox, where market participants can test innovative services and technologies. Yerlan Ashykbekov, Director of the Payment Systems Department of the National Bank of Kazakhstan, confirmed that digital asset trading service providers will be formally integrated within Kazakhstan’s legal framework. These licensed and regulated service providers will operate under the supervision of the National Bank, while digital asset exchanges currently operating within the AIFC will continue to be regulated separately by the AIFC financial regulator.
Furthermore, Kazakhstan has undertaken various measures to explore the potential of crypto payments. The first measure is the establishment of a pilot zone. On May 29, 2025, the President of Kazakhstan announced the “CryptoCity” pilot project, an innovative space where digital assets can be used to purchase goods and services. The second measure is the launch of the “Crypto Card” project, enabling consumers to conduct non-cash transactions tied to licensed exchange custodial wallets. The Crypto Card solution streamlines the integration of digital asset circulation safely and conveniently into existing payment infrastructure. The mechanism of the “Crypto Card” involves the customer being credited the value instantly to the “Crypto Card” linked to a standard payment card to their bank account when paying the transaction. The value is credited by the immediate sale of digital assets on the AIFC crypto market and real currency will be used for payment after the instant sale of the crypto asset.
During the meeting, it was also revealed that market participants will undertake pilot projects in digital assets under the National Bank’s coordination, including: 1) Issuing stablecoins backed by national currencies (including the digital tenge) for digital asset settlement; 2) Tokenization of financial assets and real estate and issuance of security tokens; 3) Organizing accounting and storage systems for underlying collateral of digital financial assets; 4) Organizing crypto asset exchange business and crypto asset storage services.
4. Conclusion
Kazakhstan’s advancements in the digital asset realm reflect its open approach and strong backing for this industry. It has consistently taken steps to improve the regulatory system for digital assets and has advocated for moderate deregulation to stimulate innovation and development, thereby shaping a digital asset ecosystem that is both compliant and globally competitive, demonstrating its strategic ambition to build a digital financial hub in Central Asia. At the same time, Kazakhstan is committed to building a modern digital asset infrastructure to ensure that digital assets can be effectively integrated into the national economic structure. These measures not only lay a solid foundation for the stable growth of the digital asset industry in the future, but also provide strong support for Kazakhstan to occupy a place in the global digital economy. With the gradual implementation of the legal and regulatory framework and infrastructure for digital asset innovation, Kazakhstan is poised to emerge as a regional leader in the digital asset sector, further diversifying its economy and strengthening its international competitiveness.