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Kazakhstan to Test Legal Crypto Payments in New ‘CryptoCity’ Zone

Kazakhstan to Test Legal Crypto Payments in New ‘CryptoCity’ Zone

CoinEditionCoinEdition2025/05/29 16:00
By:Peter Mwangi

Kazakhstan President Tokayev announced ‘CryptoCity,’ a national crypto trials zone. Located in Alatau, it allows regulated digital asset use in payments and services. The initiative aims to integrate blockchain into Kazakhstan’s digital economy.

  • Kazakhstan President Tokayev announced ‘CryptoCity,’ a national crypto trials zone.
  • Located in Alatau, it allows regulated digital asset use in payments and services.
  • The initiative aims to integrate blockchain into Kazakhstan’s digital economy.

Kazakhstan President Kassym-Jomart Tokayev has announced the launch of a national trials zone dedicated to cryptocurrency use and blockchain integration. The project will be developed in the country’s Alatau region. President Tokayev made the announcement during the Astana International Forum 2025.

This pilot zone establishes a regulated environment for utilizing digital assets in payments, services, and real estate transactions. The initiative marks a formal step by Kazakhstan toward integrating blockchain technology into its national digital economy infrastructure.

Alatau Region Chosen for Regulated Crypto Pilot Zone

The Alatau region was selected as the site for the CryptoCity project. This choice stems from the area’s existing concentration of research institutions and advanced technology parks. Alatau will function as a controlled testing ground, permitting legal cryptocurrency payments under direct state oversight.

Beyond payments, the CryptoCity pilot zone will support the development and testing of new blockchain-based systems. These include applications for digital identification and innovative tax collection models. Authorities confirmed that businesses and consumers operating within CryptoCity will have the ability to conduct transactions using cryptocurrencies. This includes the purchase of various goods and services. The legal framework governing this special zone will be constructed to monitor compliance and manage potential risks effectively, while still allowing the circulation of digital currencies.

Related: Bybit Secures Crypto Trading, Custody Services License in Kazakhstan

President Tokayev Outlines Vision for Secure Digital Asset System

In his official statement, President Tokayev pointed out the government’s objective to build a secure and transparent system for digital asset transactions. 

He confirmed that CryptoCity will allow cryptocurrency payments in a controlled setting to explore the feasibility of wider national adoption. The initiative is part of a broader policy to strengthen Kazakhstan’s digital economy through structured technological reforms.

Building on CBDC Pilot, Eyeing Regional Leadership

This CryptoCity effort follows earlier significant developments in Kazakhstan’s national blockchain strategy. In 2024, the country conducted a pilot program utilizing its central bank digital currency (CBDC). That program reportedly led to measurable improvements in the processing times for value-added tax (VAT) refunds.

Related: Emarat & Crypto.com Announce Pilot for Crypto Fuel Payments in the UAE

Kanysh Tuleushin, Kazakhstan’s first vice minister of digital development, recently stated that the nation has the potential to become a regional leader in digital finance. He conditioned this outlook on the adjustment of certain existing regulatory constraints. The CryptoCity pilot zone is therefore expected to provide crucial practical insights into managing digital asset operations under a clearly defined legal framework.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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