The National Bank of Kazakhstan has issued the country’s first official crypto exchange operating license, granting authorization to Pax Finance. This milestone gives the company the ability to offer services beyond the previously limited Astana International Financial Centre (AIFC), marking the start of a broader era for digital assets and crypto regulation in Kazakhstan.
Expanded authority under the new license
With the central bank’s approval, Pax Finance is now permitted to facilitate crypto trading, provide digital asset custody solutions, and enable conversions between cryptocurrencies and traditional fiat currencies. The new license also allows the company to open branches nationwide and deploy Bitcoin ATMs across Kazakhstan, extending its reach well beyond the capital.
Founded on May 20, Pax Finance was established by prominent figures in Kazakhstan’s financial and fintech sectors. Among the founders are Arman Batayev, who previously worked at EY and within the AIFC, and Azat Bekmagambetov, recognized as an early leader in Kazakhstan’s crypto industry and a co-founder of one of Central Asia’s first Web3 accelerator programs.
Glossary: The Astana International Financial Centre (AIFC) is a regional hub in Kazakhstan’s capital, operating under its own distinctive regulatory framework for financial services. Web3 accelerator programs provide blockchain-focused startups with mentorship, investor connections, and product development support.
The National Bank reminded market participants that the license regime for crypto sector companies officially took effect on May 1, 2026. It emphasized the requirement for all entities wishing to operate legally in the country to register with Kazakhstan’s financial regulator.
The National Bank of Kazakhstan reiterated that, as of May 1, 2026, all crypto industry participants must comply with the newly established licensing framework and fulfill ongoing registration requirements in order to operate legally.
New phase in crypto regulation
Kazakhstan gained prominence in the crypto mining industry a few years ago, following restrictive measures introduced in China. Initially, authorities limited permitted crypto activities to platforms overseen by residents of the Astana International Financial Centre, aiming to provide legal avenues for miners to convert their earnings.
The Digital Assets Law, introduced in 2023, granted cryptocurrencies official legal recognition; however, their use cases remained restricted for some time. Despite these limitations, the majority of digital asset activity persisted on peer-to-peer networks, unregistered exchanges, or platforms based outside of Kazakhstan.
Crackdown on illegal operations intensifies
Earlier this year, a series of legislative amendments were put in place to expand crypto oversight beyond Astana and establish a more comprehensive regulatory regime. In early May, changes to the Digital Assets Law were enacted, quickly followed by further measures to legalize crypto-related monetary flows.
This new license makes Pax Finance the first platform to be admitted into Kazakhstan’s expanded, regulated digital asset market. It also comes as authorities increase enforcement against unlicensed activity. According to local officials, nearly 130 illegal trading points were shuttered at the start of 2026, with these sites accounting for a combined $127 million in digital asset transactions. Investigations resulted in asset seizures valued at more than $5 million.
New momentum for crypto payments
Kazakhstan’s government has expressed concerns over significant capital outflows facilitated through cross-border crypto transfers. President Kassym-Jomart Tokayev has publicly urged regulators to curtail these outflows and strengthen oversight.
Meanwhile, authorities are also taking steps to further legitimize crypto payments within Kazakhstan’s borders. While the tenge will remain the exclusive legal tender for direct transactions, crypto holders will be able to use so-called crypto cards, which instantly convert digital assets into fiat currency for goods and services.
