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Kazakhstan Proposes Foreign Agents Law for NGOs and Media

Members of Kazakhstan’s parliament have proposed adopting a law on foreign agents, requiring media outlets and non-governmental organizations (NGOs) that receive foreign funding to disclose their financial sources. The initiative, put forward by deputies from the People's Party of Kazakhstan (PPK), has sparked debate within the country’s political and expert circles. Push for Greater Transparency Irina Smirnova, a deputy from the PPK, a party that won 10 of the 98 seats in the 2023 parliamentary elections, publicly announced the proposal. The PPK is currently the third-largest political force in Kazakhstan, following AMANAT and Ak Zhol. Citing open-source data, Smirnova claimed that approximately 200 NGOs in Kazakhstan receive foreign funding, with around 70% of these organizations reportedly financed by sources from the United States. She added that, in an official capacity, Kazakhstan has received grants from 165 different foreign donors, including 53 international organizations, 31 foreign government entities, and 81 foreign NGOs. “Financial and material-technical assistance to Kazakhstani NGOs is also provided by other foreign structures, including embassies that are not listed among these donors,” Smirnova stated. According to her, much of this foreign support is directed toward projects related to media and freedom of speech, the protection of vulnerable groups, democracy promotion, civil society development, liberal reforms, and fostering civic engagement. “And even specialists cannot always determine which resources are friendly and where we must be cautious to avoid exposure to ‘destructive soft power,’” she said. “This is a problem and a challenge for our entire society.” As a solution, the PPK is calling for a reassessment of certain NGOs operating in what it describes as a “gray zone” and a revision of the regulations governing foreign donors in Kazakhstan. Following Global Trends Smirnova cited international examples of foreign agent laws, noting that similar regulations exist in Israel (since 2016), China (since 2017), Australia (since 2018), the United Kingdom (since 2023), and France (since 2024). She also pointed to the United States’ Foreign Agents Registration Act (FARA), enacted in 1938, as a model for regulating individuals and organizations acting in the interests of foreign entities. She argued that Kazakhstan should adopt a similar law, mandating foreign-funded media and NGOs to disclose their financial sources. The proposed legislation would also outline penalties for failing to comply with registration requirements or deviating from declared activities. At the same time, the PPK suggested introducing exemptions for humanitarian and scientific organizations that receive foreign funding. Expert Skepticism The proposal has received a lukewarm response from Kazakhstan’s political analysts. Analyst Islam Kurayev dismissed the idea, arguing that Kazakhstan’s existing legal framework already regulates foreign funding and foreign-affiliated entities. “MP Irina Smirnova has been in the [parliament, the Mazhilis] for several years and should be aware that such a law is unnecessary,” Kurayev wrote on his Telegram channel. “The reason is simple: Kazakhstan’s legislation already contains provisions regulating foreign financing and individuals connected to third countries. These regulations are embedded in various legal acts, meaning the necessary restrictions are already in place. There is no need...

Finance Stock Market International Cooperation EAEU Market economy

Single Securities Market to Be Launched in the EAEU

Last week, the Eurasian Intergovernmental Council convened in Almaty, where the heads of government from the Eurasian Economic Union (EAEU) member states agreed to standardize securities trading across their stock exchanges. The agreement is expected to further integrate the financial markets of the five member countries, according to Myktybek Abirov, vice president of the Kyrgyz Stock Exchange. “The main purpose of the agreement is to harmonize the rules and standards of securities circulation within the common economic space, which will facilitate financial market integration, improve investor access, and enhance liquidity,” the Kyrgyz Ministry of Economy and Commerce stated. “The adoption of such rules will create new opportunities for businesses and investors, expanding their reach and strengthening economic ties between EAEU countries.” Abirov told The Times of Central Asia that the agreement will allow both private and state-owned companies to list their securities on stock exchanges across EAEU member states. “This is a welcome development, as it gives our issuers access to other stock markets,” Abirov said. “They will be able to place their securities in Russia, Kazakhstan, Belarus, and Armenia, while investors will gain broader access to financial instruments, enabling them to diversify risks.” According to Abirov, efforts to establish a unified securities market within the EAEU have been ongoing for a decade. The newly reached agreement includes the mutual recognition of financial brokers across member states’ stock exchanges. “Each EAEU country currently has slightly different listing requirements. Now, the Eurasian Economic Commission has set unified standards that companies must meet,” he explained. “Securities that comply with these standards will be tradable on financial markets without additional procedures.” Private financial sector representatives have expressed unanimous support for the initiative, emphasizing that greater integration will be beneficial - provided that administrative and regulatory procedures are sufficiently streamlined. The key challenge now is ensuring effective implementation, they noted. Officials at the Kyrgyz Stock Exchange hope that the first such trades will take place this year. Meanwhile, the Kazakhstan Stock Exchange (KASE) has confirmed its readiness to list foreign securities under the new framework.

salary statistics economic Economy Finance

Kazakhstan Leads Central Asia in Average Salaries

Kazakhstan continues to hold the top position in terms of average wages among Central Asian countries, according to a study conducted by analysts at Ranking.kz. Wage Comparisons Across Central Asia Data from the Interstate Statistical Committee of the CIS reveals that as of September 2024, Kazakhstan's average nominal monthly salary stood at $817.20. This figure is nearly twice as high as in Uzbekistan ($437.80) and Kyrgyzstan ($411.20). Tajikistan trails significantly behind, with an average salary of just $242.80 - 3.4 times lower than Kazakhstan’s. Notably, the wage gap between Kazakhstan and Tajikistan would have been even greater if not for a significant increase in Tajik wages. Over the past year, nominal salaries in Tajikistan rose by 24.9%, while real wages increased by 21.1% - the highest growth rate in the region. In comparison, wage growth in Kazakhstan, Kyrgyzstan, and Uzbekistan was more moderate. Data on salaries in Turkmenistan remains unavailable as the country has not updated its wage statistics since 2023. Minimum Wage Comparison Kazakhstan also leads the region in terms of minimum wages. In 2024, the minimum wage in Kazakhstan is 85,000 KZT ($181.10). By contrast: In Uzbekistan, the minimum wage is $89.40. In Tajikistan, it is $54.90. In Kyrgyzstan, it is just $28.30. In Turkmenistan, the official minimum wage is reported as $402.90, based on the fixed exchange rate of 3.5 TMT per dollar. However, due to the country’s reliance on a "black market" exchange rate (approximately 19 TMT per dollar), the actual minimum wage is estimated to be much lower, around $74.20. Sectoral Analysis When analyzing nominal salaries by economic sector, the highest wages in the region are found in finance and insurance. In Kazakhstan, the average salary in this sector exceeds $1,700 - three times higher than in Tajikistan ($561.90). Workers in Kazakhstan's mining industry also enjoy high incomes. In Uzbekistan and Kyrgyzstan, the financial sector and IT industry offer the highest salaries. Meanwhile, in Tajikistan, relatively high wages are reported in the manufacturing and service sectors. Inflation and Its Impact Inflation remains a key factor affecting the real purchasing power of wages across Central Asia. According to the CIS Interstate Statistical Committee, the most significant price increases in 2024 occurred in the economically developed countries of the region - Kazakhstan and Uzbekistan. Uzbekistan: Inflation reached 7.7% in October 2024. Kazakhstan: Inflation stood at 6.6%. Kyrgyzstan: Inflation was lower at 4.2%. Tajikistan: The region’s lowest inflation rate was recorded at 3.2%. These inflation rates directly influence the population's purchasing power, even in countries with higher nominal salaries like Kazakhstan and Uzbekistan. Kazakhstan’s leadership in wages and minimum income underscores its position as the most economically advanced country in Central Asia. However, inflation and significant disparities in income distribution between sectors and regions remain challenges. While countries like Tajikistan are showing progress in wage growth, the overall gap in earnings between Central Asian nations continues to highlight economic inequalities within the region.

Financial Market Digital Technologies Cryptocurrency Government Finance

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.

money Legislation Banking Finance

Kazakhstan Limits Payment Card Validity for Non-residents

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDF) has introduced new rules limiting the validity of payment cards issued to non-residents to one year. Exceptions are made for businessmen, investors, and diplomats. The changes are intended to reduce risks associated with drug trafficking and digital asset transactions. The ARDF clarified that the new restrictions do not apply to payment cards already in use. Under the updated regulations, banks are required to closely monitor transactions linked to drug trafficking; transfers to digital asset exchanges not affiliated with the Astana International Financial Centre (AIFC); and payments to electronic or online casinos. Banks must also scrutinize customers holding more than five cards at a single bank or three cards at three different banks. The new measures include stricter verification requirements for beneficial owners (BO): individuals who ultimately benefit from a company or assets, even if these are registered under another name. Financial institutions are now mandated to use all available tools, including official documents and public records, to identify the actual owners of assets. Previously, beneficial ownership was determined based solely on a person holding 25% or more of a company’s authorized capital. These reforms aim to enhance the transparency of financial transactions and prevent illegal activities, including fraud, money laundering, and other financial crimes.

Finance Banking Legislation National Bank

The National Bank of Kyrgyzstan Seeks Greater Control Over Commercial Banks

The National Bank of the Kyrgyz Republic (NBKR) has proposed a draft law aimed at regulating tariffs and commissions for banking and payment services provided by commercial banks. The proposal has been published for public discussion on the official government portal Koomtalkuu. The NBKR argues that the regulation is necessary to improve the accessibility of banking services for Kyrgyz citizens. While the current system of free pricing for banking services fosters competition, encourages better customer service and allows for economic flexibility, the regulator is concerned that it also creates barriers for certain segments of the population. “Under competition, some financial organizations may use hidden fees or complex tariff structures, which make it difficult for customers to understand the true cost of services. This also complicates the ability to compare offers and select the most favorable option,” the bill’s background brief states. The National Bank told The Times of Central Asia that interest rates on loans from banks and microfinance institutions in Kyrgyzstan can reach 33–34% per annum. Such high rates significantly increase the financial strain on citizens, reducing the availability of credit. “High tariffs also increase financial burdens on businesses, driving up operational costs. This can lead to higher prices for goods and services, dampened business activity, and reduced consumer demand. In turn, this creates additional risks for banks and the economy as a whole,” the NBKR explained. The central bank also expressed concerns about the potential for market abuse by large financial players. It noted that dominant institutions could inflate fees to suppress competition, discouraging innovation and slowing the development of more affordable financial products. The NBKR argues that Kyrgyzstan needs fair, transparent, and economically justified tariffs for banking services to mitigate these issues. The regulator believes such measures would reduce financial strain on consumers and businesses while fostering a more competitive and innovative banking sector. As of October 1, 2024, Kyrgyzstan's financial sector comprised: 21 banks; 194 non-bank financial and credit institutions; 3 credit bureaus; 1 guarantee fund; 41 payment organizations; and 40 payment system operators. This diverse and growing financial ecosystem underscores the importance of effective regulation to ensure broad accessibility and equitable practices in the banking sector.