Analysis of Kazakhstan's Digital Asset Policies and Regulatory Dynamics

1. National Overview

Kazakhstan is a landlocked country spanning across the Eurasian continent. After gaining independence in 1991, it became one of the rapidly developing and politically stable countries in Central Asia. The country is composed of 14 provinces and 3 cities of republican significance, with Kazakh and Russian as the official languages, and the national currency is the tenge. It is worth noting that Kazakhstan has developed rapidly in the field of Bitcoin mining, with currently 75 officially registered mining companies.

2. Definition of Digital Asset

According to Kazakhstan law, digital assets refer to property created in electronic digital form, with specific digital codes, registered and protected through distributed data platform technology. They can serve as a medium of exchange, unit of measurement, or means of saving, but are not issued or guaranteed by the government, distinguishing them from legal tender and electronic currency.

3. Tax Policy

Kazakhstan has adopted a clear tax policy for the digital asset industry:

• Mining electricity tax: From 2024, the tax rate for electricity used in digital asset mining will be unified at 2 tenge/kilowatt-hour. When using self-generated electricity or renewable energy, the tax rate will be 1 tenge/kilowatt-hour.
• Corporate Income Tax: Digital asset companies are required to pay a 20% corporate income tax. The actual income from the sale of digital assets is not included in the annual total revenue, but taxable income is recognized based on the digital asset value published by the tax authorities.
• Personal income tax: Individuals selling digital assets must pay personal income tax, with a resident tax rate of 10% and a non-resident rate generally at 20%.
• Value Added Tax: The allocation and sale of assets in digital asset mining activities are exempt from value added tax.

4. Regulatory Policies

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

• Establish the Astana International Financial Centre (AIFC) as a pilot zone for digital asset regulation.
• Establish the Astana Financial Services Authority ( AFSA ) as an independent regulatory body.
• In 2023, the "Digital Asset Law" was passed, laying a legal foundation for the development of digital assets.
• Actively promote the Digital Geko project and explore the application of digital assets in public and crypto payments.
• Plan to establish a standardized environment for the circulation of digital assets nationwide.
• Promote the revision of legislation to introduce the concept of digital financial assets (DFA).
• Establish a digital asset regulatory sandbox to allow market participants to test innovative services and technologies.
• Plan to launch the "CryptoCity" pilot zone to explore the application of digital assets in everyday transactions.
• Launch the "Crypto Card" project to facilitate the integration of digital assets with existing payment systems.

5. Future Outlook

Kazakhstan is committed to building a digital financial hub in Central Asia, creating a favorable environment for the digital asset industry by improving the regulatory framework and infrastructure. With the gradual implementation of relevant policies, Kazakhstan is expected to occupy an important position in the global digital economy, promoting the diversification of its national economy and enhancing international competitiveness.