For years, Kazakhstan has walked a careful line with digital assets. The country has allowed crypto to exist within narrow boundaries while keeping its traditional financial system firmly protected. That balancing act is now becoming more explicit as lawmakers move toward clearer rules for how people can buy and trade cryptocurrencies, but not spend them.
The latest policy direction reflects a broader trend seen across emerging markets. Governments want oversight, transparency, and control, especially when retail participation grows faster than regulation.
That is the environment in which Kazakhstan is reshaping its crypto framework, a move that also affects how global exchanges such as Gemini are viewed by regulators watching cross border activity.
Gemini relevance grows as Kazakhstan reshapes crypto rules
Kazakhstan is preparing to formally allow cryptocurrency investments while maintaining a strict ban on crypto payments for everyday goods and services.
The approach is outlined in amendments to the country’s banking and financial legislation, which are currently under review in the Senate. The proposed framework treats cryptocurrencies as investment assets rather than a medium of exchange.
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Madina Abylkasymova, head of the Agency for Regulation and Development of the Financial Market, confirmed that regulated cryptocurrency exchanges will be allowed to operate under the supervision of the National Bank of Kazakhstan. These platforms will be permitted to offer buying, selling, and holding services for approved digital assets.
However, the use of crypto for payments will remain prohibited. Digital coins cannot be used to settle transactions at shops, businesses, or service providers.
Authorities also plan to approve a specific list of cryptocurrencies that can be traded on licensed platforms. This creates a controlled environment similar to how some regulators assess exchanges like Gemini based on asset selection, compliance standards, and custody rules.
At present, legal crypto trading in Kazakhstan is largely confined to platforms registered under the Astana International Financial Center. That regime, while compliant, has proven too limited for the scale of the market.
Industry estimates suggest only a small share of local investors use these licensed exchanges. Most activity still flows through offshore platforms or unregulated channels, a gap the government now wants to close.
Why this matters
Kazakhstan’s decision highlights a clear regulatory philosophy. The country wants the economic upside of crypto investing without introducing payment level disruption to its monetary system.
For retail investors, this means greater legal clarity but fewer use cases. For exchanges such as Gemini, it signals how regulators in Central Asia are thinking about market access, asset approval, and oversight.
The move also reflects growing concern over capital flows, consumer protection, and compliance, especially as crypto adoption expands beyond early adopters.
How Kazakhstan plans to regulate crypto without banning it
Instead of an outright ban, Kazakhstan is expanding regulation beyond the Astana International Financial Center.
The National Bank and the financial market regulator have introduced a new category called crypto exchange service providers. These entities will require licenses and will operate under central bank supervision when converting crypto to fiat currency.
Existing AIFC based platforms will continue operating under their current legal framework, creating a dual system during the transition period.
At the same time, the government is experimenting with limited innovation zones. A pilot project called CryptoCity is planned in Alatau, where crypto payments may be tested under a special legal status.
This controlled testing model mirrors how other jurisdictions observe exchanges like Gemini in sandbox environments before granting broader permissions.
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