TLDR
- Kazakhstan grants a three-year tax exemption on eligible crypto transactions declared and moved to licensed local platforms.
- Crypto holders must declare their assets and transfer them to approved domestic platforms by December 31, 2026.
- The program excludes digital assets linked to fraud, money laundering, or unlicensed crypto activities.
- Kazakhstan has about one million crypto wallets, while only 257,000 users are registered on authorized local exchanges.
- The decree also supports crypto mining using flared gas from oil fields to provide an alternative energy source.
Kazakhstan has introduced a three-year tax exemption for eligible crypto transactions as authorities seek to move more digital assets onto licensed domestic platforms.
President Kassym-Jomart Tokayev signed a decree on July 7 creating a voluntary disclosure program for digital asset holders. Under the program, individuals can receive a personal income tax exemption from 2026 through 2028 if they declare their crypto holdings and transfer them to licensed platforms in Kazakhstan by the end of 2026.
The tax relief applies only to assets that are not linked to fraud, money laundering or other illegal activity. The program gives holders until December 31, 2026, to complete the disclosure and transfer process.
Kazakhstan Sets Conditions for Crypto Tax Relief
The new program covers transactions involving digital assets handled through regulated Kazakhstani digital asset service providers. Holders must disclose their assets and move them to eligible domestic platforms before receiving the tax benefit.
Authorities have also set restrictions on the origin of assets covered by the program. Digital assets connected to illegal activity will not qualify, creating a requirement for platforms and regulators to establish the lawful source of declared holdings.
Kazakhstan had about one million crypto wallets as of March 2026, based on data from the country’s financial regulator and the Astana International Financial Centre. Only around 257,000 users were registered with authorized local exchanges, leaving a gap between overall wallet activity and participation in regulated platforms.
The voluntary disclosure program is designed to address that gap by providing a tax incentive for holders to move assets into the domestic regulated market.
New Rules Cover Crypto and Digital Asset Services
The tax program follows a wider regulatory framework that took effect on May 1, 2026. The rules expanded the country’s legal framework for digital assets and introduced requirements covering stablecoins, tokenized assets and digital asset service providers.
Licensed exchanges and custody providers are among the businesses covered by the regulatory framework. The government has also been working to establish clearer rules for digital asset activities after earlier restrictions affected the country’s crypto market.
Kazakhstan became a major Bitcoin mining destination after China restricted cryptocurrency mining in 2021. The influx of miners increased pressure on the country’s electricity system, prompting authorities to introduce tighter controls on power consumption and mining activity.
At its peak, cryptocurrency mining was estimated to account for a substantial share of Kazakhstan’s electricity demand. Restrictions later contributed to miners moving operations abroad, while some activity continued outside the regulated sector.
Kazakhstan Plans New Role for Crypto Mining
The latest decree also includes provisions related to cryptocurrency mining powered by associated petroleum gas. The measure allows the use of gas that would otherwise be burned as waste at oil production sites.
Using associated gas for mining could provide an alternative energy source for mining operations while reducing the amount of gas burned at oil fields. The provision forms part of Kazakhstan’s broader effort to establish regulated digital asset activity alongside its energy sector.
The country has not introduced a complete ban on cryptocurrency mining, leaving the sector subject to licensing and energy-related rules. Authorities have instead moved toward tighter oversight of mining companies and digital asset service providers.
The voluntary disclosure program will remain open through December 31, 2026. The tax exemption will cover qualifying transactions during the three-year period from 2026 through 2028, provided the assets meet the program’s legal requirements.
