Kazakhstan to Launch "CryptoCity" Pilot Zone to Foster Cryptocurrency Adoption

Kazakhstan is making a bold move in the world of digital assets by announcing the creation of "CryptoCity," a pioneering pilot zone aimed at exploring the use of cryptocurrencies for payments and other applications. President Kassym-Jomart Tokayev unveiled this initiative during his speech at the Astana International Forum on May 29, 2025, highlighting the country's commitment to becoming a hub for blockchain and cryptocurrency innovation.

According to President Tokayev, CryptoCity will serve as a regulatory sandbox where cryptocurrencies can be used to purchase goods, services, and even for other purposes. "We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond," he stated.

Alatau: The Potential Home of CryptoCity

The proposed location for CryptoCity is Alatau, a city established in 1957. Alatau is home to the Institute of Nuclear Physics and the Kazakhstan National Nuclear Center. It also hosts the Innovation Technology Park, making it a natural choice for this new digital initiative.

Kazakhstan has been actively involved in the development of blockchain and cryptocurrency technologies in recent years. In late 2024, the country launched a pilot project for its central bank digital currency (CBDC), which reduced VAT refund wait times significantly. This project demonstrated the potential of digital financial systems and laid the groundwork for initiatives like CryptoCity.

Moreover, Kazakhstan has demonstrated a sustained commitment to fostering blockchain innovation through its multi-year partnership with Binance. Starting in 2023, the government collaborated with Binance to develop blockchain education programs and establish regulatory frameworks for the crypto industry. This cooperation continued into 2025, further solidifying Kazakhstan’s proactive stance in the digital asset space.

By leveraging Alatau’s technological legacy and Kazakhstan’s growing expertise in blockchain, CryptoCity has the potential to set a new standard for cryptocurrency adoption and innovation on a global scale.

Kazakhstan's Minister of Digital Development, Zhaslan Madiyev, elaborated on the vision for CryptoCity, stating that the area would allow for the free circulation of cryptocurrencies. "The concept is that cryptocurrency would be used as a means of payment — to pay in restaurants, cafes, buy real estate, make investments. I believe this could be a major breakthrough for the blockchain industry," Madiyev said. He also emphasized that the necessary legal frameworks are being developed to support this initiative.

Kazakhstan's Broader Vision for Digital and Economic Reform

The announcement of CryptoCity is part of Kazakhstan's broader strategy to modernize its economy and establish itself as a leader in digital technology. Over the past few years, the country has implemented significant economic and institutional reforms, including transitioning to a more balanced presidential system and fostering a diversified, inclusive economy.

President Tokayev expressed optimism about the future, stating, "Our vision is not measured in numbers alone. These reforms aim to create a new social contract – one where prosperity becomes a public dividend. We are investing in human capital, expanding opportunities for young professionals".