00:00Muzyka
00:10Kazachstan aims to become one of Eurasia's leading crypto hubs.
00:13Trading is now legal on national bank approved platforms
00:16and mining has been formalized as a licensed business.
00:19The country is also creating a national crypto reserve
00:22using seized assets to invest in digital markets.
00:25Welcome to EastWestConnect.
00:29We're highlighting business and economic opportunities in Kazakhstan
00:32and the wider Central Asia region, connecting with Europe and beyond.
00:37After becoming a crypto mining hotspot,
00:40Kazakhstan rolled out sweeping regulation in 2023.
00:43But by 2025, about 95% of digital asset turnover,
00:47over 13 billion euro, was still illegal.
00:50At the same time, trading volumes on licensed digital asset platforms
00:54surged more than 20-fold.
00:55From just over 270 million euro in 2023
00:59to nearly 6 billion in the first three quarters of 2025.
01:03To discuss the attractiveness of Kazakhstan's crypto sector,
01:07we're now joined by Dauryan Karashev,
01:09Chair of the National Blockchain Association.
01:12Mr. Karashev, welcome to the program.
01:14Thank you.
01:15What is Kazakhstan's ultimate goal when it comes to crypto?
01:18Is it control, revenue or innovation?
01:20The ultimate goal is clear and regulated development of crypto market in Kazakhstan.
01:27Crypto is innovation.
01:28At the same time, crypto is not fully identifiable,
01:33is often used in criminal activity tool.
01:37That's why the main priority of our country is to provide transparency.
01:42When we talk about transparency,
01:43we should understand how and where the crypto traded,
01:47exchange it, and who is responsible for that.
01:50How safe and attractive is Kazakhstan for international and domestic crypto investors?
01:55And does the state balance incentives with restrictions effectively?
02:00Until 2026, the sole and legal gateway for crypto
02:05was Astana International Financial Center.
02:07And from 2026, the second framework under the national bank will launch.
02:15And this creates the hybrid model.
02:18The first system is for international investors.
02:21The second one is for internal investors.
02:25And Kazakhstan is also the leading crypto mining hub.
02:29The locally mined crypto is considered as clear without any history of transaction.
02:35And it's driving the demand for such crypto.
02:39And it sells through licensed local exchanges.
02:42It should enhance security and trust to our market for crypto investors.
02:48So what are the risks of trading in a currency that is not officially issued by the government?
02:54There is no central bank on behind that can provide transparency, stability, and security.
03:01Moreover, this risk is not only about price volatility.
03:06There is also the infrastructural risk.
03:08For example, blockchain networks works with validators.
03:13Validators are paid by the same tokens.
03:16If the price for these tokens falls sharply and stays low,
03:22the validators can leave the blockchain market.
03:25Mr. Karashev, thanks so much for being with us.
03:26Thank you for inviting me.
03:28By December 2025, the Financial Monitoring Agency had seized and frozen almost 14 million euro
03:35in illegally acquired crypto, some linked to darknet operations and illicit marketplaces.
03:41In a bid to legalize and regulate the sector, President Tokayev announced the Alatau Crypto City Project,
03:47the country's first pilot zone where crypto payments will be permitted.
03:51Kazakhstan plans to turn Alatau Crypto City into a pioneering digital hub and a smart city for innovation,
03:59attracting tech talent and investment.
04:02Users will be able to conduct crypto-based transactions for real estate and business activities.
04:07The sandbox will operate under crypto-friendly laws, tax incentives,
04:10and a national digital asset reserve, shifting the economy from purely mining to a broader digital ecosystem.
04:17We have a special tax regime.
04:19It includes incentives for corporate income tax, VAT and others,
04:24and this will improve the return on investments.
04:28And the second is that we apply common law.
04:31Investors will definitely benefit because they will find familiar and predictable legal framework
04:37and eventually it will become a safe harbor for their assets.
04:40Alongside developing the crypto sector, the government is establishing a forensic system
04:44to detect illegal activity, ensuring a safer environment for users.
04:48Even if bad actors attempt to bypass regulations,
04:51Kazakhstan's crypto-forensic tools aim to restore users' rights and secure their interests.
04:56Through the Alatau Crypto City concept,
05:23and Kazakhstan hopes to attract scalable innovation and investment
05:26that will contribute the economic growth within a securely regulated environment.
05:32Joining us now is Binur Żelenov,
05:35Chief Digital Officer and Advisor to the Chairman of the National Bank of Kazakhstan.
05:41Mr. Żelenov, good to have you with us.
05:44Thank you. Thank you for your invitation. It's a pleasure to be here.
05:46How will digital finance help drive Kazakhstan's economic modernization
05:52through the National Reserve and Crypto City project?
05:54In December, we launched National Crypto Reserve.
05:57It essentially would help us to diversify our sovereign portfolio.
06:01We will have three types of investment there.
06:03So the first type is confiscated funds from illegal activity in crypto, etc., etc.
06:09But we also will be directly investing in certain crypto assets,
06:14for example, Bitcoin or whatsoever.
06:16And the third type is a direct investment to crypto-related activities,
06:19ETF funds, crypto ecosystem players like Binance or Binance Equity and these companies.
06:25But we will make this investment, of course, on a risk-based approach.
06:30So we hope that this type of class will help us to drive our profits.
06:35How will the National Bank protect the Tengue now that crypto is entering the financial system?
06:40And in essence, we are trying to build this national crypto ecosystem anchored to national currency.
06:46So naturally, it wouldn't really harm our monetary sovereignty or financial stability.
06:51But of course, it would take time.
06:52And we hope that the regulation that we developed is balanced.
06:56So on one hand, we want to protect consumers from illicit activity, from fraud.
07:00And we want to prevent capital outflows and many other bad things.
07:06But on the other hand, we want to enable innovative business models.
07:09And it just will be two jurisdictions within one country with two different regulators.
07:14And they would complement each other.
07:16I don't see any conflict of interest.
07:18We will focus on mostly on the local supply and demand, retail, crypto investments, etc.
07:25And like local players in AFC will regulate the players who want to be a little bit more global and regional.
07:32And we will build bridges between offshore jurisdiction, AFC, and onshore jurisdiction.
07:37So it's complementary things.
07:39We are not buying anything that is already happening in AFC.
07:43We're just expanding this to build a more sophisticated digital ecosystem in Kazakhstan.
07:48Mr. Jolinov, thanks so much for your time today.
07:50Yeah, thank you.
07:51It's been a pleasure.
07:54That's all for now.
07:55See you in the next episode of EastWest Connect.
07:57Thank you.
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