Country overview

#16
Kazakhstan

Country stats

Rating Points
390
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.7%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
8
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
160
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
323 000
Total amount of crypto users out of the country's total population based on public data.
Taxation points
80
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
82.8
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Legally allowed ezone
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Considerable danger
The overall level of security in a given country based on open data.
Crypto Salaries
Ban
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Medium
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Mining
This field indicates jurisdictions where mining requires a special license.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Good
Medium
Bad
intro

Kazakhstan plays the role of legal blockchain hub in Central Asia. It has an advanced crypto regulation framework and a strong mining industry. Having obtained a license in the local innovative hub - AIFC(1), you can take advantage of tax benefits.

However, there is a small number of crypto companies (11 licensed in AIFC), and it's challenging to obtain a license in Kazakhstan, and collaboration is required.

Security level

Kazakhstan has a considerable danger security level according to our rating. This jurisdiction has 53.6 points (from 100) for safety level in Numbeo crime rating (1¹). Homicide level (2) is 3.2 per 100,000 inhabitants a year.

Crypto Payments

Crypto payments are allowed only through the AIFC Astana.

Crypto Salaries

No regulation/no data.

Legal

The Law “On Digital Assets in the Republic of Kazakhstan” (3) came into force on April 1, 2023. De jure exchange is possible only within registered platforms in the AIFC Astana. There are also illegal exchanges. However, they are under pressure from the police. For example, in May 2023, illegally operating ABS exchange(4) was closed.

Regulators support local legal exchanges - exchanges should be carried out only through platforms registered in KZ. Starting in 2024, miners must exchange up to 75% of their capital on local trading platforms to support their operations.

At the beginning of 2022, 8 licenses(5) were issued. There are currently 11 companies on the register(6). Including Binance, Bitfinex, Bybit, Eurasia, and Upbit. Platforms licensed in the AIFC Astana have the right to(7) “exchange and convert cryptocurrencies, deposit and withdraw fiat currencies, store crypto assets and exchange trading in cryptocurrencies.”

Taxation
Tax nameIndex
PIT tax Min5
PIT tax Max10
Corporate tax (CIT)20
Min Individual CGT (for crypto)20
Max Individual CGT (for crypto)20
Wealth tax Min0
Wealth tax Max0
Mining tax 15
PIT

A single flat rate of 10% is applicable to personal income in according to PWC(8).

CIT

The tax rate for corporations is 20%, in obedience to PWC(9).

CGT

20%. Capital gains are subject to the normal CIT rate in concordance with PWC(10)

The new law and the country's tax regimes show the government's commitment to crypto. Income and capital gains tax on crypto for individuals is 10%; corporate tax is 20%. Income and capital gains tax for individuals is 10%. Corporate tax is 20%.

Kazakhstan's low tax rates, transparent procedures, and developed economic ties make this country an attractive jurisdiction for anyone dealing with crypto assets.

The rate for individuals when exchanging cryptocurrencies is 10%. The standard income tax(11) is 20%; Companies registered in the AIFC are exempt(12) from it.

Links

1)Welcome to AIFC

1¹)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)The law. О цифровых активах в Республике Казахстан. Law on digital assets in the Republic of Kazakhstan.

4)Крипто. В Казахстане закрыли серый криптовалютный обменник с оборотом $34 млн. A gray cryptocurrency exchanger with a turnover of $34 million was closed in Kazakhstan. Article

5)Курсив. AIFC reveals how many crypto exchanges it has registered. Article

6)AFSA. Провайдеры услуг цифровых активов. Digital Asset Service Providers. Article

7)Блог Binance. Binance объявляет о запуске локальной платформы цифровых активов в Казахстане. Binance Announces the Launch of a Local Digital Asset Platform in Kazakhstan. Article

8)Kazakhstan. Individual - Taxes on personal income. PWC

9)Kazakhstan. Corporate - Taxes on corporate income. PWC

10 and 11)Kazakhstan. Overview. PWC

12)GSL. Создание компании с получением единой финансовой лицензии в Международном финансовом центре «Астана» (МФЦА) в Казахстане. Предложение на оказание услуг. Creation of a company with obtaining a unified financial license in the Astana International Financial Center (AIFC) in Kazakhstan. Offer for services. Aricle