Groundbreaking Crypto Payment Zone Announced

Kazakhstan will establish a specialized economic zone called "CryptoCity" where digital currencies become legal tender for everyday transactions. President Kassym-Jomart Tokayev revealed the initiative during his keynote at the Astana International Forum 2025, positioning the nation as Central Asia's cryptocurrency frontier.

Regulated Testing Ground for Digital Assets

The pilot project will operate within a controlled sandbox environment, allowing residents to purchase goods, services, and even real estate using cryptocurrencies. ——This marks Kazakhstan's most ambitious blockchain integration attempt to date—— according to official statements published on the presidential website.

【Notably】, the scheme builds upon the country's 2024 digital tenge experiment, which reportedly slashed VAT refund processing times by 【40%】. Digital Development Minister Zhaslan Madiyev confirmed regulators are finalizing the legal framework to enable "free cryptocurrency circulation under compliant oversight."

Why Alatau Emerged as the Prime Location

The planned CryptoCity will likely anchor in Alatau, a research-focused settlement housing nuclear physics facilities and an existing Innovation Technology Park. This southeastern region's unique combination of scientific infrastructure and special economic zone status made it the natural choice.

——The integration of crypto payments with established research institutions could create unprecedented synergies—— noted Vice Minister Kanysh Tuleushin, who previously suggested Kazakhstan could dominate Central Asia's crypto landscape with regulatory reforms.

Strategic Economic Transformation Play

Beyond payment innovation, officials envision CryptoCity attracting global blockchain talent and investment. The project forms part of a broader digital economy push that includes:

• Development of crypto-friendly legislation
• Creation of tax incentives for fintech firms
• Implementation of blockchain-based government services

As of press time, authorities haven't disclosed the pilot's launch timeline but confirmed infrastructure development is already underway. The initiative places Kazakhstan alongside Indonesia and other nations experimenting with regulatory sandboxes for digital assets.

Balancing Innovation With Oversight

While promoting cryptocurrency adoption, the government emphasized maintaining strict anti-money laundering controls. All transactions within CryptoCity will reportedly undergo real-time monitoring through partnerships with licensed digital asset exchanges.

Industry analysts suggest this cautious approach might position Kazakhstan favorably amid growing global scrutiny of cryptocurrency markets. The country's 【$1.4 billion】 crypto mining industry already accounts for 【6%】 of the global Bitcoin hash rate.

Interestingly, the CryptoCity announcement coincides with the World Economic Forum's recent endorsement of sandbox models for decentralized finance. This alignment with international best practices could accelerate Kazakhstan's ambitions to become Eurasia's next fintech hub.