Kazakhstan’s 75% Mandatory Sale Rule Led 95% of Crypto Investors into ‘Gray Zone’

Kazakhstan’s president voiced surprise at data suggesting that up to 95% of crypto investors chose to operate illegally rather than comply with the mandatory rule requiring 75% of newly minted coins to be sold on AIFC exchanges. Officials had hoped this policy would ensure transparency and boost tax revenues, but the outcome was the opposite. Instead, many players avoided licensing, preferring to remain undeclared.

By year’s end, only 45 firms obtained licenses, while approximately 258 closed or went underground. The Ministry of Digital Development believes the situation may shift if certain conditions are relaxed and a transitional tax period is introduced. It is noteworthy that roughly $800m in annual Bitcoin turnover remains untracked in official data.

Government agencies now plan multiple consultations with experts and the sector to reach a compromise. Proposals include increasing the limit for overseas sales from 25% to 40%, alongside easing rules for foreign capital. Observers caution that, without broader reforms, the country risks losing its status as a leading mining hub in the region.