Olzhas Kuspekov, a member of Kazakhstan’s Mazhilis (the lower house of parliament), has proposed tightening government regulation of cryptocurrency circulation and blocking access to unlicensed crypto exchange websites and mobile applications.
Currently, cryptocurrency transactions in Kazakhstan are only permitted through licensed platforms operating under the Astana International Financial Center (AIFC). However, Kuspekov stated that in practice, these exchanges accounted for less than 14% of the country’s total crypto transactions in 2023. Citing data from U.S.-based blockchain analytics firm Chainalysis, he said the illegal segment of Kazakhstan’s crypto market reached $3.5 billion last year out of a total market volume of $4.1 billion.
In a parliamentary inquiry addressed to the chairman of the National Bank of Kazakhstan, Kuspekov expressed concern that unlicensed exchanges continue to operate openly. “Their applications remain available on the AppStore and PlayMarket, and they are widely advertised on social media,” he said. He called on the National Bank to initiate blocking of these digital platforms.
Kuspekov also urged the government to audit money transfers and enhance internal controls among commercial banks to ensure compliance with cryptocurrency legislation. “Some banks are servicing crypto transactions that fall outside the legal framework. According to the Financial Monitoring Agency, more than KZT 4.2 billion ($8.2 million) in transactions were processed through accounts at ten financial institutions. In most cases, internal compliance mechanisms were not applied,” he stated.
The lawmaker further warned of a growing trend among young Kazakhs becoming involved in the gray market, influenced by bloggers and self-styled financial “coaches.” As a countermeasure, he proposed the establishment of a state digital reserve, under the National Bank, for storing seized crypto assets.
As previously reported by The Times of Central Asia, other deputies from the Ak Zhol faction have also called for the creation of a national cryptocurrency bank to further formalize and regulate the digital asset economy in Kazakhstan.
