Kazakhstan Plans CryptoCity Pilot Zone for Cryptocurrency Adoption

Kazakhstan has announced plans to establish a pilot zone named “CryptoCity,” where cryptocurrencies will be accepted as a legitimate means of payment for goods and services. This initiative was revealed by President Kassym-Jomart Tokayev during the Astana International Forum 2025. The pilot zone aims to explore the adoption of cryptocurrencies within a regulated environment, allowing for the use of digital currencies in various transactions, including purchasing goods, services, and real estate, as well as making investments.

The government and regulators are currently working together to determine the most suitable location for CryptoCity. One city under serious consideration is Alatau, a settlement close to the south-eastern border of Kazakhstan. Alatau was established in 1957 as a research hub and houses several scientific institutions, including the Institute of Nuclear Physics and the Kazakhstan National Nuclear Center. The city also hosts the special economic zone known as “Innovation Technology Park,” making it a natural fit for the CryptoCity initiative. The concept envisions cryptocurrency as a ubiquitous means of payment, used in restaurants, cafes, and for real estate transactions, among other uses. This could potentially attract additional capital and boost local economic growth.

Minister of Digital Development Zhaslan Madiyev expressed hope that the project would attract developers, programmers, and IT specialists to Kazakhstan, thereby fostering local economic growth. He emphasized that the focus is on developing a regulatory framework that supports the free circulation of cryptocurrency and crypto-friendly legislation. Madiyev highlighted that the city itself is already under development and that CryptoCity implies a legal environment where cryptocurrency is a legitimate means of payment. These conditions need to be reflected in the law to ensure the success of the initiative.

This announcement is part of a series of recent crypto-related developments in Kazakhstan. Earlier in May, the country’s first vice minister of digital development, Kanysh Tuleushin, stated that Kazakhstan has the potential to become a leading crypto hub in Central Asia if regulatory restrictions are eased. Additionally, in late 2024, Kazakhstan launched a new pilot project with its central bank digital currency, which reportedly reduced value-added tax refund wait times significantly. These initiatives underscore Kazakhstan's commitment to embracing cryptocurrency and blockchain technology as part of its economic strategy.