Kazakhstan Unveils Ambitious Crypto City and AI Hub Initiative

Kazakhstan is taking a bold step toward integrating digital assets into its economy with the launch of “CryptoCity,” a pilot zone where cryptocurrencies like Bitcoin can be legally used for everyday transactions, including goods and services.

Announced on 29 May via the official presidential website, the initiative signals a shift in national policy—away from prohibition and toward thoughtful regulation of digital currencies.

Unveiled by President Kassym-Jomart Tokayev during the Astana International Forum 2025, which convened global political, business, and institutional leaders, CryptoCity will serve as a regulatory sandbox.

Within this controlled environment, Kazakhstan will test the legal use of cryptocurrencies, allowing consumers and businesses to transact under the watchful eye of regulators.

The goal is to develop a comprehensive legislative framework that supports the open circulation of digital assets while ensuring compliance and mitigating risk.

Tokayev positioned the pilot as a way to attract crypto developers and investors, reinforcing Kazakhstan’s growing reputation as a regional crypto mining hub.

He expressed in his remarks:

“We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond.”

While specific details about CryptoCity’s structure remain undisclosed, the project is the latest in a series of pro-crypto initiatives designed to capture more economic value from the country’s expanding digital asset sector.

Kazakhstan to Build CryptoCity in Alatau as Part of Digital Economy Push

Alatau was selected as the site for CryptoCity due to its robust technology and research infrastructure, making it an ideal environment for advancing blockchain and digital finance initiatives.

As home to Kazakhstan’s Innovation Technology Park and several leading scientific institutions, Alatau offers a strong foundation to support the pilot project’s ambitious goals.

Minister of Digital Development Zhaslan Madiyev said:

“Of course, the most promising place for CryptoCity is the new city of Alatau – it’s the President’s initiative.”

Government officials and regulators, including Madiyev, are finalising project details but have expressed a clear preference for Alatau, citing its established tech ecosystem.

This choice is expected to foster synergies and stimulate economic growth, aligning Kazakhstan with global leaders like the US and China in embracing cryptocurrency adoption.

Located near Kazakhstan’s southeastern border, Alatau was founded in 1957 as a settlement dedicated to scientific research and housing for institutional staff.

It hosts the Institute of Nuclear Physics, the Kazakhstan National Nuclear Center with its experimental nuclear reactor and cyclotron, and the Physics and Technology Institute.

Beyond its scientific heritage, Alatau features a special economic zone—the Innovation Technology Park—which strengthens its appeal as a hub for innovation.

Given its existing status as a research and technology center, regulators see expanding Alatau’s scope to include CryptoCity as a logical progression.

He elaborated:

“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.”

This expansion is anticipated to generate valuable synergies, attract investment, and accelerate the region’s development under crypto-friendly legislation and infrastructure currently underway.

Kazakhstan Embraces Crypto

Madiyev expressed optimism that CryptoCity will draw developers, programmers, and IT professionals to Kazakhstan, driving significant local economic growth.

While emphasizing that efforts remain focused on establishing a comprehensive regulatory framework, he confirmed that “the city itself is already under development.”

He further highlighted that CryptoCity aims to enable the free circulation of cryptocurrency, supported by crypto-friendly legislation, positioning digital assets as a fully legitimate means of payment within the zone.

He added:

“These conditions need to be reflected in the law.”