Kazakhstan Digital Asset Policies and Regulatory Developments

1. Country Overview

Kazakhstan is a republic that spans the Eurasian continent and is the largest landlocked country in the world. It declared independence on December 16, 1991, and shares borders with several countries. The country is composed of 14 regions and 3 cities of republican significance. The official languages are Kazakh and Russian, and the legal currency is the tenge. Kazakhstan is one of the faster-growing economies in Central Asia, with a relatively stable political situation. Notably, Kazakhstan has already established an important position in the field of Bitcoin mining.

2. Definition of digital asset

According to the laws of Kazakhstan, digital assets are properties created in electronic digital form, with specific digital codes, and do not belong to monetary accounting units or legal tender. They are registered and protected through distributed data platform technology.

3. Tax Policy

Kazakhstan has implemented specific tax policies for the digital asset industry:

1. Mining Tax: Starting from January 1, 2024, a tax of 2 Tenge per kilowatt-hour will be levied on electricity used for digital asset mining.

2. Corporate Income Tax: Companies engaged in digital asset business are required to pay a 20% corporate income tax.

3. Personal Income Tax: Individuals who sell digital assets are required to pay personal income tax, with a resident tax rate of 10% and a non-resident rate generally at 20%.

4. Value Added Tax: Digital asset mining and sales are exempt from value added tax.

4. Regulatory Policies

Kazakhstan adopts an open and supportive policy stance on digital assets:

1. Astana International Financial Center ( AIFC ), as a special legal area, is responsible for formulating rules related to digital assets.

2. In 2023, the Digital Asset Law was enacted to provide a legal basis for digital asset activities.

3. The national bank actively promotes the construction of a regulatory framework for digital assets, including the revision of regulations and the establishment of regulatory sandboxes.

4. Plan to launch digital Genge and explore the application of digital assets in the payment field.

5. Plan to establish a CryptoCity pilot area, allowing the use of digital assets to purchase goods and services.

6. Launch the "Crypto Card" project to integrate digital assets with traditional payment systems.

5. Future Outlook

Kazakhstan is striving to build a digital financial center in Central Asia by improving regulations, constructing infrastructure, and other measures to create a favorable environment for the development of the digital asset industry. It is expected that in the future, efforts will further promote the legalization and standardization of digital assets, as well as explore more innovative applications to enhance the country's competitiveness in the global digital economy.