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Kazakhstan is joining the ranks of Thailand, Bhutan and Dubai as they make moves to incorporate crypto payments into its everyday economy. The country has announced plans to launch CryptoCity, a pilot zone for crypto payments and adoption. CryptoCity will be set within Kazakhstan’s capital city, Astana, and will test-drive the real-world use of cryptocurrencies in retail, hospitality, and public services within a controlled regulatory framework. The initiative will benefit from state-backed infrastructure and support from major industry players such as Binance and the Astana International Financial Centre (AIFC). For a country that has previously played a central role in global crypto mining, crypto adoption and a boost in utility seems to be the natural next step.
In this article, we explore Kazakhstan’s crypto-friendly past and present, the architecture behind CryptoCity, and how this initiative aligns with current global trends for broader crypto adoption.
Crypto-friendly Kazakhstan from then until now
Kazakhstan’s announcement to launch CryptoCity comes not as a surprise, but as a logical next step to their already crypto-friendly policies. Kazakhstan’s relationship with crypto began in 2021 following the exodus of miners from China. The country swiftly became the world’s second largest hub for Bitcoin mining, accounting for up to 18% of the global hash rate. Foreign mining operations flooded in, particularly to Kazakhstan’s northern regions, attracted by the low electricity costs and relatively stable political climate. But unfortunately, the boom had consequences.
Unregistered operations strained the national grid, prompting a regulatory crackdown and the introduction of licensing frameworks, energy rationing and incentives to use renewable power. Since then, the Kazakh government has progressively expanded its role in digital finance. Alongside mining regulation, it has piloted a central bank digital currency (CBDC), the digital tenge, and implemented blockchain infrastructure trials within the financial sector. The announcement of CryptoCity in May 2025 during the Astana International Forum was a sign of a strategic escalation of these plans.
The architecture behind CryptoCity
CryptoCity, the controlled pilot zone designed to encourage crypto adoption, will allow crypto payments for real-world use in retail, hospitality, and public services, testing the waters and the utility of digital assets with government oversight. The initiative is backed by the Astana International Finance Centre (AIFC), with technical and strategic support from Binance and other industry players. It’s a natural evolution of Kazakhstan’s tightening regulatory architecture and its broader ambition to embed digital assets into mainstream economic infrastructure.
The project was formally unveiled by President Kassym-Jomart Tokayev at the 2025 Astana International Forum. “We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond,” he announced. The pilot is likely to be hosted in Alatau, a tech-centric district home to the Innovation Technology Park and several national research institutes. Minister of Digital Development Zhaslan Madiyev elaborated on the plans, stating “CryptoCity implies free circulation of cryptocurrency, crypto-friendly legislation, and crypto as a legitimate means of payment. These conditions need to be reflected in the law.”
Alignment with global trends for broader crypto adoption
Kazakhstan’s initiative aligns with global trends for crypto adoption, as regional and national governments around the world make plans to incorporate digital assets into the local economy. In Thailand, the Tourism Authority recently partnered with digital wallet providers to support Bitcoin and stablecoin payments at select venues, positioning the country as a digital-first destination for global travelers. In Bhutan, the local government also partnered with Binance Pay and DK Bank to launch the world’s first national tourism crypto payment system, offering a wealth of benefits to local merchants and retailers, even in rural areas.
Elsewhere, in Panama City, local residents are now able to pay for taxes and other municipal charges such as fees, permits, and tickets, in BTC, ETH, USDT, and USDC following the capital’s decision to accept digital assets as payment. The common thread across each of these projects is a strategic move towards crypto utility and more practical and accessible payment infrastructures. As such, Kazakhstan’s decision forms part of a wider movement to incorporate the benefits of decentralized finance into the traditional economic model. If successful, it could become a blueprint for other nations weighing up how to responsibly introduce citizens to the benefits of crypto as a viable payment method.
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