Kazakhstan’s Digital Asset Overhaul
Kazakhstan is undergoing a transformative overhaul of its approach to digital assets, following the enactment of new laws by President Kassym-Jomart Tokayev that significantly liberalize the country’s cryptocurrency regulations. This legislative update, titled “On Amendments and Additions Concerning Artificial Intelligence and Digitalization,” serves to dismantle previous constraints that confined cryptocurrency activities to the Astana International Financial Center (AIFC). As a result, digital assets can now be traded and utilized throughout the entire nation, provided participants adhere to the broader national guidelines.
Key Amendments to Cryptocurrency Regulations
One of the most impactful amendments involves the elimination of the obligation for cryptocurrency miners to transact their earnings through the AIFC’s exchange. This newfound flexibility allows miners greater autonomy over their operations, enabling them to manage their cryptocurrencies without being tethered to a specific platform. The new law formally recognizes cryptocurrency mining for both individual entrepreneurs and corporate entities, further distinguishing this practice from the activities related to the circulation of digital assets, which reduces the regulatory overhead for miners.
Additionally, the legislation revokes the earlier prohibition on the issuance and circulation of unsecured digital assets. With this development, licensed cryptocurrency exchanges are now permitted to operate within Kazakhstan, laying the groundwork for a more structured and regulated exchange marketplace. These modifications are scheduled to come into effect 60 days after their official announcement.
Enhancing Compliance and Transparency
In response to the need for enhanced compliance, officials hope the revamped legal structure will attract more transparency from investors. President Tokayev highlighted that only a small fraction—approximately 5%—of market players adhered to the existing AIFC regulations, while the majority functioned outside formal oversight.
Legislation on Artificial Intelligence
Concurrently, Tokayev introduced another piece of legislation aimed at artificial intelligence, which outlines fundamental principles governing AI operations, including mandates for transparency, legality, fairness, and data protection. To counter potential misuse of AI, this law will introduce a new system for labeling AI-generated content, aiming to mitigate the risks associated with deceptive or manipulative information. Moreover, technologies that exploit subconscious influence or unlawfully procure personal data will also face prohibition under these regulations.
Future Aspirations in Digital Technology
Future plans include the establishment of a national AI platform designed to foster the development and testing of AI models securely. Kazakhstan’s aspirations in the digital technology arena are further underscored by a recent memorandum signed with Nvidia, which aims for the acquisition of $2 billion worth of AI chips, reflecting the nation’s commitment to advancing its technological capabilities.
