CryptoCity: a new digital territory in Kazakhstan

On May 29, 2025, at the plenary session of the Astana International Forum, President of the Republic of Kazakhstan – Kassym-Jomart Tokayev announced the launch of the CryptoCity pilot project— a specialized zone in the new city of Alatau, where cryptocurrency will be used as a means of payment and an investment tool. 

CryptoCity is seen as an experimental model of a pilot zone combining elements of legal sovereignty, technological openness, and economic adaptability. Below are the key parameters of the project: functional areas, regulatory framework, and expected effects.

Functional areas:

• Use of cryptocurrencies to pay for goods and services;
• Investment in real estate and infrastructure;       
• Creation of conditions for doing business with digital assets;
• Development of the blockchain industry and
• Recruitment of relevant specialists.

Regulatory framework:

The project is being implemented with the participation of the Astana International Financial Center (AIFC) and relevant government agencies. The main areas of regulatory work are:

• Developing a legal regime for
• The circulation of cryptocurrencies;        
• Implementing KYC/AML procedures;         
• Forming a tax model for CryptoCity residents;
• Standardizing digital identification and smart contracts.

It is expected that a special legal regime similar to that of the AIFC will be created, with simplified access for foreign investors and technology companies.

Expected effects:

The implementation of the CryptoCity project may lead to a number of economic and infrastructural changes:

• An influx of capital is expected from cryptocurrency funds, venture investors, and technology companies interested in working in a favorable regulatory environment.
• The project has the potential to create new jobs in the fields of information technology, fintech, legal and consulting services, especially in the area of digital law and compliance.
• Kazakh IT companies and blockchain platforms will have the opportunity to enter international markets by offering products and services in the field of digital assets, smart contracts, and crypto payments.

The project is being implemented against the backdrop of global interest in central bank digital currencies (CBDCs). The Republic of Kazakhstan is demonstrating an alternative approach — the integration of private cryptocurrencies into the economy. This may affect its positioning in international technological and financial dialogues.

Conclusion

CryptoCity is an experimental model of a digital economy with elements of legal and technological sovereignty. The implementation of the project depends on the quality of the regulatory framework, the level of trust on the part of businesses, and the ability of state institutions to ensure the transparency and security of operations. Although many details and factors may change before the project is launched, it is safe to say that the Republic of Kazakhstan is taking a big and confident step towards developing the institution of digital assets in the country.

Authors: Alibek Slan, Andrey Artyushenko.