Kazakhstan Issues First Crypto Exchange License

Kazakhstan has issued its first license allowing a cryptocurrency exchange to operate outside the special regulatory framework previously limited to the Astana International Financial Centre (AIFC). The National Bank of Kazakhstan granted the license to local company Pax Finance.

Based in Astana, Pax Finance is now authorized to buy, sell, store, and exchange cryptocurrencies for fiat currencies. The company can also open branches and install Bitcoin ATMs across the country. Kazakhstan introduced its cryptocurrency licensing framework on May 1, 2026, requiring all crypto businesses to obtain a license and register with the central bank.

Pax Finance was founded on May 20 by professionals from Kazakhstan’s financial and fintech sectors. Its founders include Arman Batayev, formerly with EY and the Astana International Financial Centre, and Azat Bekmagambetov, co-founder of Central Asia’s first Web3 accelerator for blockchain and cryptocurrency startups.

Kazakhstan became an important destination for the crypto industry after China banned cryptocurrency mining. Until now, legal crypto trading was restricted to exchanges operating within the AIFC. Although cryptocurrencies were officially recognized under the Digital Assets Law introduced in 2023, their practical use remained limited.

Most crypto trading continued to take place through peer-to-peer transactions or on unregistered foreign platforms. In 2026, the government introduced new regulations to reduce the black market and position Kazakhstan as a regional cryptocurrency hub. The updated rules now allow licensed exchanges to operate outside the AIFC.

The approval of Pax Finance marks a new stage in the country's crypto market development. At the same time, authorities continue to crack down on illegal operators. Since the beginning of 2026, law enforcement agencies have shut down around 130 unauthorized crypto platforms that processed transactions worth approximately $127 million. Authorities have also seized assets valued at more than $5 million.

The government believes cryptocurrencies have been used to move capital out of the country illegally. President Kassym-Jomart Tokayev has called for stronger action to stop these practices. Meanwhile, Kazakhstan is preparing to legalize cryptocurrency payments. While the tenge will remain the country's only official currency, digital asset holders will be able to pay for goods and services using crypto cards that automatically convert cryptocurrencies into fiat currency at the time of payment.