Kazakhstan's Stablecoin Pilot: First in Region to Modernize Financial Infrastructure

Kazakhstan has taken a significant step in digital finance by launching a pilot program allowing USD-pegged stablecoins to pay regulatory fees, marking the first such initiative in the region. The Astana Financial Services Authority (AFSA), the regulatory body for the Astana International Financial Centre (AIFC), signed a multilateral memorandum of understanding (MMoU) with Bybit Kazakhstan during the Astana Finance Days 2025 event. This collaboration enables AIFC participants to settle fees in stablecoins like Tether (USDT) or Circle’s USDC, streamlining payments for entities operating in the financial hubKazakhstan to Introduce Legal Framework for Digital Financial Assets Including Stablecoins^[1]. Bybit became the inaugural signatory of the MMoU, with AFSA CEO Evgeniya Bogdanova emphasizing the initiative’s role in positioning the AIFC as a regional leader in digital financeKazakhstan’s AFSA To Adopt Stablecoins for Regulatory Fees^[2].

The pilot project operates through a structured framework where licensed Digital Asset Service Providers (DASPs), such as Bybit, act as intermediaries. These entities accept stablecoin payments from AIFC participants and convert them into fiat currency before remitting the funds to AFSA’s bank account. This approach ensures compliance with regulatory requirements while leveraging the efficiency of blockchain technologyKazakhstan Pioneers Stablecoin Payments: AFSA’s Pilot Allows Fees in USD-Pegged Tokens^[3]. AFSA does not directly handle digital assets, aligning with global practices where intermediaries manage crypto-related transactionsKazakhstan Embraces Stablecoins for Regulatory Fees^[4]. Bybit’s COO for Kazakhstan, Mazurka Zeng, highlighted the initiative’s potential to empower businesses by enabling borderless opportunities in a stablecoin-powered payment ecosystemKazakhstan Allows USD Stablecoins for Paying Regulatory Fees^[5].

Kazakhstan’s broader regulatory push for digital assets includes a new banking law that classifies digital financial assets (DFAs) into three categories: stablecoins, tokenized assets, and digital financial instruments. The National Bank of Kazakhstan will oversee stablecoin issuance, while the Agency for Regulation and Development of the Financial Market sets requirements for other DFAs. This legal framework aims to modernize the country’s financial infrastructure, expand digital economy opportunities, and allow DFAs as collateral for loansKazakhstan to Introduce Legal Framework for Digital Financial Assets Including Stablecoins^[6]. The reforms also recognize the digital tenge as a national currency form, reinforcing the government’s commitment to integrating digital finance into the traditional systemKazakhstan to Introduce Legal Framework for Digital Financial Assets Including Stablecoins^[6].

The AIFC, home to over 4,000 companies from 80 countries, has positioned itself as a key player in Central Asia’s financial landscape. By adopting stablecoin payments, the AIFC addresses inefficiencies in traditional fiat-based transactions, such as delays and high costs, particularly for firms holding digital assets as primary treasury. AFSA’s initiative mirrors similar global efforts, including Switzerland’s Lugano city and Ohio’s tax payment systems, where governments accept stablecoins but convert them to fiat through intermediariesKazakhstan Embraces Stablecoins for Regulatory Fees^[4]. This model balances innovation with regulatory caution, mitigating risks associated with direct digital asset handling.

The pilot program aligns with Kazakhstan’s growing influence in the crypto sector. The country has emerged as a major hub for cryptocurrency mining and is exploring a state-run crypto reserve. Recent developments include the launch of Central Asia’s first Bitcoin ETF by Fonte Capital and studies on a government-backed digital asset reserve. These moves underscore Kazakhstan’s strategic vision to leverage blockchain technology for economic diversification and financial inclusionKazakhstan Allows USD Stablecoins for Paying Regulatory Fees^[5]. Analysts note that the AIFC’s adoption of stablecoins could attract more digital asset firms to the region, enhancing its competitiveness against global financial centersKazakhstan to Introduce Legal Framework for Digital Financial Assets Including Stablecoins^[1].