Kazakhstan Launches CryptoCity for Blockchain Integration

Kazakhstan President Kassym-Jomart Tokayev has announced the establishment of a national trials zone dedicated to cryptocurrency use and blockchain integration, named ‘CryptoCity.’ This initiative is set to be developed in the country’s Alatau region, a location chosen for its concentration of research institutions and advanced technology parks. The announcement was made during the Astana International Forum 2025, marking a significant step towards integrating blockchain technology into Kazakhstan’s digital economy infrastructure.

The CryptoCity project aims to create a regulated environment where digital assets can be used in payments, services, and real estate transactions. This pilot zone will serve as a controlled testing ground, allowing legal cryptocurrency payments under direct state oversight. The initiative is part of a broader policy to strengthen Kazakhstan’s digital economy through structured technological reforms.

Beyond payments, CryptoCity will support the development and testing of new blockchain-based systems, including applications for digital identification and innovative tax collection models. Businesses and consumers operating within this zone will have the ability to conduct transactions using cryptocurrencies, including the purchase of various goods and services. The legal framework governing this special zone will be constructed to monitor compliance and manage potential risks effectively, while still allowing the circulation of digital currencies.

President Tokayev outlined the government’s objective to build a secure and transparent system for digital asset transactions. He confirmed that CryptoCity will allow cryptocurrency payments in a controlled setting to explore the feasibility of wider national adoption. This initiative follows earlier significant developments in Kazakhstan’s national blockchain strategy, including a pilot program utilizing its central bank digital currency (CBDC) in 2024. That program reportedly led to measurable improvements in the processing times for value-added tax (VAT) refunds.

Kanysh Tuleushin, Kazakhstan’s first vice minister of digital development, recently stated that the nation has the potential to become a regional leader in digital finance. He conditioned this outlook on the adjustment of certain existing regulatory constraints. The CryptoCity pilot zone is therefore expected to provide crucial practical insights into managing digital asset operations under a clearly defined legal framework. This initiative underscores Kazakhstan’s commitment to leveraging blockchain technology to enhance its digital economy and position itself as a leader in the region.