Why you still can’t buy a latte with Bitcoin in Kazakhstan

Kazakhstan’s new rules for spent-at-the-register crypto / Photo: Shutterstock, photo editor: Serikzhan Kovlanbayev

Cryptocurrencies cannot be used to pay for goods and services in Kazakhstan, according to Madina Abylkassymova, head of the Agency for Regulation and Development of the Financial Market, who spoke at a recent parliamentary hearing.

Her comments came as Kazakhstan’s Senate reviewed a new law on banks and banking activities that introduces formal regulation of digital financial assets, including cryptocurrencies.

«For the first time in Kazakhstan, we will allow the creation of cryptocurrency exchange points, which will be regulated by the National Bank,» Abylkassymova said. «The use of cryptocurrency for payments will not be permitted, but it will be allowed for investment purposes.»

She added that regulators will define an approved list of cryptocurrencies, as well as a list of authorized platforms where they can be purchased. Licensed organizations will be allowed to provide crypto-related services under strict limitations and oversight by the National Bank.

At present, cryptocurrency transactions in Kazakhstan are only legally permitted on exchanges licensed by the Astana International Financial Centre. However, industry experts estimate that only about 5% of Kazakhstani crypto investors use these regulated platforms.

The majority, experts say, continue to operate in a so-called «gray zone,» relying on unregulated or offshore services outside the country’s formal financial system.