Kazakhstan OKs Income-Tax Break for Trading on Licensed Crypto Platforms

Kazakhstan is moving to accelerate the development of its crypto sector after President Kassym-Jomart Tokayev signed a decree on 7 July 2026. The Ministry of Artificial Intelligence and Digital Development (MAIDD) made the decision public the following day. The decree was drafted jointly by MAIDD, the National Bank of Kazakhstan and the Astana International Financial Centre (AIFC), and expands the country's existing digital-asset framework. At the center is an income-tax exemption for trading gains generated on licensed, regulated platforms in Kazakhstan. The measure builds on the 2023 Law on Digital Assets and the licensing requirement for unbacked crypto exchanges in force since 1 May 2026, under which exchanges must register with the National Bank. Three policy tools, one package The decree combines three levers: a tax exemption for trading income on licensed venues, plans to develop stablecoin-based mechanisms for cross-border payment settlement, and a new energy rule designed to support mining. Tax-free trading, tied to regulated infrastructure Going forward, income from trading digital assets will remain exempt from income tax as long as transactions take place on licensed platforms regulated in Kazakhstan. Trading through unregulated channels does not qualify, effectively steering activity toward approved exchanges. The decree also introduces a voluntary disclosure mechanism. Investors may declare digital assets previously held on unregulated foreign platforms and transfer them to licensed domestic venues. The disclosure option and the tax incentive are designed to work together by pulling capital into a controlled, state-supervised system. Zhaslan Madiyev, Minister of Artificial Intelligence and Digital Development, framed the initiative as a location-policy tool aimed at attracting foreign capital and skilled talent into a transparent environment. "Our goal is to make Kazakhstan a magnet for global capital and expertise while ensuring maximum transparency." Stablecoins targeted for trade payments The decree also addresses payments by calling for the development of mechanisms to use stablecoins in cross-border settlements, with a focus on import and export transactions. Stablecoins, whose value is typically pegged to a reference currency such as the US dollar, are positioned as payment infrastructure rather than a speculative instrument. While the initiative highlights potential speed and cost advantages over traditional correspondent-banking routes, the decree does not yet specify technical standards. Mining power from associated gas A third component targets mining energy supply. The decree allows mining operations to generate power using associated gas and natural gas from oil and gas fields, provided the state does not require the gas for its own needs. Associated gas is produced during oil extraction and is often flared. Kazakhstan has been a major Bitcoin-mining hub; Cambridge Centre for Alternative Finance data put the country third globally by hashrate in 2022. That position was built on low-cost electricity, but tighter regulation and repeated grid constraints later pressured the sector and led some miners to leave. By opening access to associated gas, authorities aim to provide an additional energy source that can reduce costs without adding strain to the public grid, while also linking the crypto industry more closely to the oil-and-gas sector. From the 2023 law to a planned state reserve The July 2026 decree marks the latest step in a multi-year regulatory trajectory anchored by the 2023 Law on Digital Assets and the exchange licensing regime effective from 1 May 2026. Tokayev had previously instructed regulators to deliver a comprehensive digital-asset framework by 2026; the new order broadens the current system rather than replacing it. In parallel, the government is advancing a state reserve initiative. In a September 2025 state-of-the-nation address, Tokayev announced a state Digital Asset Fund to be managed by the National Bank's investment company. In November 2025, the National Bank outlined plans for a crypto reserve fund of USD 500 million to 1 billion, to be sourced from confiscated assets, repatriated foreign holdings and mining proceeds. Central bank chief Timur Suleimenov said the fund would invest primarily in ETFs and shares of digital-finance companies, while taking a cautious approach to direct crypto exposure. The direction points to a state-orchestrated model for the sector. Rather than a bottom-up development path, Kazakhstan is using regulation as an instrument of economic policy to shape a controlled, licensed crypto market.