Digital Technologies - The Times Of Central Asia

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Kazakhstan to Crack Down on “Gray” Smartphones

Starting March 24, 2025, Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry will require telecom operators to verify the IMEI codes of smartphones and disconnect illegally purchased devices. According to ministry officials, the new regulation will apply only to phones purchased after March 24, 2025. Under the new system, all smartphones in Kazakhstan will be categorized into three lists based on their IMEI codes: White List: Legally purchased smartphones. Gray List: Devices with suspicious IMEI codes, such as duplicates. Owners will have 30 days to confirm their device's legitimacy. Black List: Stolen or counterfeit phones, which will be blocked from network access. “The goal of these new regulations is to combat the circulation of illegal devices,” said Dias Tolegenov, head of the Monitoring and Development of Wireless Projects Department at the ministry’s Telecommunications Committee. Phones imported before March 24, 2025, will not be affected by the new rules. Buyers can already check a device’s IMEI code on a dedicated government portal to avoid purchasing illegal or counterfeit smartphones. Azamat Seriktaev, another ministry representative, noted that blocking stolen phones through IMEI registration will help reduce mobile device theft. Meanwhile, the regulations are expected to curb the flow of illegally imported or fraudulently registered devices. According to Mazhilis deputy Ekaterina Smyshlyaeva, 64% of mobile devices in Kazakhstan’s market are imported through illegal or “gray” schemes: “In 2024, the state lost nearly 100 billion tenge (approximately $196 million) in unpaid value-added tax (VAT) due to these illegal imports.” She outlined several common fraudulent practices, including: Customs Evasion: Phones are imported without proper customs clearance. Mislabeling: High-end smartphones are registered as budget models to reduce tax liabilities. IMEI Duplication: Fraudsters copy the IMEI numbers of legally imported devices and assign them to multiple smuggled phones - sometimes up to five or six per code. “Often, people check a new phone’s IMEI and find out that, according to the system, it was manufactured 10 years ago,” Smyshlyaeva noted. To further tighten control, Smyshlyaeva suggested: Integrating IMEI registration with customs data to detect fraudulent imports. Automatically cross-checking IMEI numbers with the Customs Register of Intellectual Property Objects. Limiting personal imports to two smartphones per year per individual to prevent bulk smuggling. Separately, Mazhilis deputy and former Education Minister Askhat Aimagambetov have proposed restrictions on children’s use of smartphones in schools. As The Times of Central Asia previously reported, Kyrgyzstan is considering similar measures in schools and universities.

E-Government Regional Security Digital Technologies Regional Relations Afghanistan

Central Asia Expands Trade and IT Cooperation with Afghanistan Amid Regional Growth Plans

The Central Asian countries continue to develop their trade relations with Afghanistan, a crucial factor in the region's economic growth and resilience against economic and political challenges. Afghanistan's key trade partners in Central Asia are Uzbekistan, Turkmenistan, and Kazakhstan. While Tajikistan and Kyrgyzstan play a smaller role, they still contribute by exporting electricity and agricultural products to Afghanistan. Afghanistan is Uzbekistan's fifth largest export market. Over the past five years, trade turnover between the two countries has grown by nearly 1.5 times, reaching $866 million in 2023. Currently, 550 enterprises with Afghan investments operate in Uzbekistan, with 443 being fully Afghan-owned. Joint projects span industries such as food production, construction materials, agriculture, tourism, and textiles. Recently, Uzbekistan and Afghanistan signed business agreements worth $4.5 million between their private sectors. For Turkmenistan, the most significant project involving Afghanistan is the TAPI gas pipeline. President Berdimuhamedov recently directed the government to accelerate the development of the Galkynysh Gas Field and expedite the TAPI pipeline's construction. The state company Turkmengas has already completed a 214-kilometer section on Turkmenistan's territory, fully preparing it for operation. This project is a key component of the country's socioeconomic development and investment program for 2025. Additionally, Turkmenistan is poised to become a transport hub for international corridors passing through Kazakhstan, particularly the North-South and Middle corridors, as well as the Lapis Lazuli corridor, which connects Turkey, Georgia, Azerbaijan, Turkmenistan, and Afghanistan. Although Kazakhstan does not share a border with Afghanistan like Uzbekistan and Turkmenistan, it remains an active trade partner. The Times of Central Asia has previously detailed trade relations between Astana and Kabul, highlighting Kazakhstan’s potential not only for expanding trade but also for entering Afghanistan’s IT market. The Afghan news portal AVA Press notes Kazakhstan’s role in regional stability and economic development. It also mentions Kazakhstan’s humanitarian aid to Afghanistan, including earthquake relief in 2023 and food assistance in 2024. The article touches on Afghanistan’s IT sector challenges and Kazakhstan’s potential role in addressing them. Afghanistan lags in IT development and relies on imported technologies, but Kazakhstan, recognized for digital transformation, could be a valuable partner. Kazakhstan’s e-government model, including the eGov platform, serves as an example of how digital services can improve governance and infrastructure. Choosing Kazakhstan as an IT partner is seen as a strategic decision based on the country’s internationally recognized digital achievements, strong economic ties, and mutual trust.

Transport Air Transport Digital Technologies public transport Innovative technology

Unmanned ‘Aero Taxi’ Planned to Launch in Kazakhstan Next Year

Kazakhstan plans to introduce an unmanned aero taxi service by 2026, following the example of South Korea, Minister of Transportation Marat Karabayev has announced. He outlined the project's timeline and potential routes. First Route and Project Details According to Karabayev, there are currently no legal restrictions preventing the launch of aeromobile services in Kazakhstan. "The first stage will involve a route from Almaty to the town of Alatau. We are in discussions with Kazakh entrepreneurs, and a pilot launch is planned for 2026. These will be silent, hydrogen-fueled helicopters capable of carrying five passengers. One Kazakhstani company has already expressed interest in developing the aeromobility sector," he said. He noted that similar technologies are being actively developed in South Korea and the United States, and Kazakhstan is studying their potential implementation. "We are currently assessing how this technology can be adapted for our country," Karabayev added. Regulatory Framework and International Experience The minister also mentioned that the Ministry of Digital Development, Innovation, and Aerospace Industry has proposed studying international regulatory practices for such vehicles. "We will review this proposal. As unmanned vehicles become more common in Kazakhstan, we will develop the necessary legislative framework," he assured. However, Karabayev clarified that no amendments are currently being considered regarding liability for accidents involving unmanned vehicles. Global Developments in Aero Taxi Technology Unmanned aero taxis are already being tested and partially deployed in several countries. In the UAE, the Chinese company EHang has conducted pilot flights in Dubai, while in China, EHang has obtained certification for commercial operations. Meanwhile, South Korea is also conducting trials of air taxi services.

China Digital Technologies Digital Service AI

China’s AgiBot to Produce Robots in Kazakhstan

Chinese robotics company AgiBot plans to establish a joint venture in Kazakhstan to manufacture and deploy robots at industrial facilities across the country. The company also aims to introduce artificial intelligence (AI) solutions as part of its expansion strategy. An agreement of intent was signed between AgiBot and Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry during the Digital Almaty 2025 forum. Qazaqstan Investment Corporation JSC, a private equity fund founded in 2007 to support private equity and venture capital development, will also participate in the project. To implement the initiative, AgiBot has partnered with EWPartners, a private investment firm specializing in cross-border collaborations with leading Chinese industrial companies. AgiBot, founded in February 2023, focuses on the development and production of general-purpose humanoid robots for industrial and domestic use. Kazakhstan is the first country in the region where AgiBot plans to localize production and expand exports. As part of the partnership, the company is expected to launch a “data factory” for training robots and robotic systems. Qazaqstan Investment Corporation and EWPartners will contribute to financing this project. Additionally, a joint R&D center and an exhibition of AgiBot prototypes are set to be established at the Alem AI International Center for Artificial Intelligence. AgiBot also intends to collaborate with Kazakhstani universities to develop joint research projects and train students in robot assembly. “Partnership with an advanced company like AgiBot is an important milestone in the history of Kazakhstan’s robotics industry. I would especially like to highlight that this agreement includes the localization of robot production in Kazakhstan. This will not only help launch a facility in one of the most promising branches of mechanical engineering but also strengthen local expertise and create a domestic center of competence in robotics,” said Zhaslan Madiev, Kazakhstan’s Minister of Digital Development, Innovation, and Aerospace Industry. As previously reported by The Times of Central Asia, Kazakhstan exports IT products and services to 95 countries. With AgiBot’s involvement, the country may soon add robot exports to its growing digital economy.

taxes Economic Cooperation Digital Technologies e-Commerce Economy

eBay Officially Registers for Tax Purposes in Uzbekistan

The American e-commerce giant eBay has officially registered for tax purposes in Uzbekistan, according to UzDaily. As a result, eBay will now pay value-added tax (VAT) on its services in the country. Other global companies, including Netflix, Amazon, Google, Apple, and Zoom, are also registered with Uzbekistan’s special tax office for foreign digital companies. In total, 64 foreign companies are currently complying with the country’s VAT requirements. The Tax Committee of Uzbekistan reported that 61 foreign companies providing electronic services contributed 101.9 billion UZS (approximately $7.89 million USD) in taxes to the national budget between January and September 2024. This represents a 2.1-fold increase compared to the same period in 2023, highlighting the growing importance of foreign digital service providers in Uzbekistan's economy. In December 2024, Uzbekistan introduced new regulations requiring all companies providing e-commerce services to register as legal entities in the country. Despite their tax registrations, major platforms like eBay and Amazon have not yet established physical offices in Uzbekistan, raising questions about their long-term plans for expanding operations in the local market. In related news, The Times of Central Asia previously reported that Binance, one of the world’s largest cryptocurrency exchanges, will officially begin offering services to users in Uzbekistan. This move underscores the country’s growing focus on integrating global digital platforms into its economy. eBay’s registration for VAT in Uzbekistan marks another step in the country’s efforts to regulate and tax the growing digital economy. As more global companies comply with Uzbekistan’s tax requirements, questions remain about whether these platforms will deepen their presence in the country by establishing local offices.

Finance Financial Market Digital Technologies Cryptocurrency Government

Binance Officially Launches Operations in Uzbekistan

The National Agency for Prospective Projects has announced that Binance, one of the world’s largest cryptocurrency exchanges, will officially provide services to users in Uzbekistan. According to the agency’s press service, Binance will operate in the country through the local company CoinPay LLC, ensuring compliance with Uzbekistan’s laws. Residents of Uzbekistan will be able to access the platform via coinpay.uz, which will allow users to deposit and withdraw funds in the national currency using bank cards and local payment systems. “The system will launch after integrating all partner platforms, including national payment systems,” the agency stated. Legal Challenges Resolved This development comes after Binance faced regulatory challenges in Uzbekistan. In January 2024, the National Agency for Prospective Projects fined Binance for non-compliance with the country’s laws on cryptocurrency asset turnover. The agency subsequently filed a lawsuit in the Tashkent City Economic Court to enforce the fine. The court trial, which ran from March 26 to June 7, 2024, ruled in favor of the agency. Binance was fined 300 base calculation amounts, which the company paid in full to the state budget. Binance’s Expansion in Central Asia Uzbekistan is the latest addition to Binance’s growing presence in Central Asia. The exchange launched its first local digital asset platform in the region in Kazakhstan in June 2023. This platform is based at the Astana International Financial Center. Later that year, Binance Kazakhstan partnered with the National Bank of Kazakhstan and the National Payment Corporation to implement a groundbreaking project: the issuance of the world’s first stablecoin backed by a national digital currency. This innovation was tested on the BNB Smart Chain (BSC) network. Binance has also made efforts to engage with the cryptocurrency community in Kyrgyzstan. In January 2023, the company held its first community meet-up in the country. In May of that year, Binance’s regional head for Central Asia, Kirill Khomyakov, described Kyrgyzstan as a promising market for cryptocurrency development. However, despite these initiatives, Binance has not yet officially launched operations in the Republic. Binance’s official entry into Uzbekistan marks another step in its strategic expansion across Central Asia. By complying with local regulations and collaborating with a licensed partner, Binance has reinforced its commitment to integrating its platform into Uzbekistan’s growing cryptocurrency landscape.