Kazakhstan Bets Big on Crypto Banks—Will It Dodge the ’Regulatory Theater’ That Plagues Traditional Finance?

Kazakhstan’s financial regulators are making a power play—greenlighting crypto-friendly banks to turbocharge its digital asset sector. The move signals a sharp pivot from its mining-focused strategy, now targeting institutional capital and blockchain infrastructure.

Behind the scenes: Astana wants to transform into a Eurasian crypto hub, but skeptics whisper about another jurisdiction chasing ’blockchain legitimacy’ while Wall Street still treats crypto like a risky side hustle. The real test? Whether these banks can onboard clients faster than regulators change their minds.

Crypto banks and innovation 

According to Bektenov, crypto banks will not only support digital asset transactions but also enhance transparency and compliance with anti-money laundering and counter-terrorism financing requirements. 

They are expected to play a key role in digital asset projects and promote innovation in blockchain and IT sectors.

Bektenov emphasized that introducing crypto banks would increase Kazakhstan’s investment appeal and demonstrate the maturity of its financial infrastructure within the decentralized finance space. 

The move is also expected to create demand for new talent, particularly in compliance, blockchain analytics, and AML roles, while improving liquidity for both fiat and digital currencies in the AIFC.