The National Bank of Kazakhstan has issued the first crypto exchange operating license in the country under the updated legal framework for digital assets. The permit was granted to Pax Finance, paving the way for the company to provide services in a wider area, moving beyond the old structure limited to the financial center in Astana.
The area of authority expanded with the license
The license issued by the central bank allows Pax Finance to trade cryptocurrencies, provide digital asset custody services and convert between crypto and fiat money. The company will also be able to open branches and install Bitcoin ATMs across the country.
Pax Finance was founded on May 20. Among the founders of the company are prominent names from Kazakhstan’s finance and financial technologies circles. One of them is Arman Batayev, who previously worked at EY and Astana International Financial Center. Another founder, Azat Bekmagambetov, is among the early names in the country’s crypto industry and is among the founders of one of the first Web3 accelerator programs in Central Asia.
Mini dictionary: Astana International Financial Center is a regional center established in the capital of Kazakhstan and operates with special rules for financial services. Web3 acceleration programs provide mentoring, investment connections and product development support to blockchain-focused startups.
The National Bank of Kazakhstan reminded that the licensing regime for companies in the crypto sector comes into force on May 1, 2026. The bank also emphasized that companies that want to operate legally in the country must also register with the monetary authority.
The National Bank of Kazakhstan reported that the licensing scheme for crypto market participants has been put into effect as of May 1, 2026, and the registration requirement for legal activity continues.
New phase in regulations
Kazakhstan had become one of the noteworthy countries in terms of crypto mining after the restrictions on mining in China a few years ago. Authorities initially allowed crypto transactions only on platforms operated by residents of the Astana International Financial Center, so that miners could convert the assets they produced on legal grounds.
Cryptocurrencies were legally recognized with the Digital Assets Law, which came into force in 2023, but their usage area remained limited for a long time. Despite this, a significant portion of digital asset transactions continued in peer-to-peer channels, unregistered exchanges or foreign-based platforms.
Pressure against illegal transactions increased
The legal changes made this year were prepared with the aim of a more comprehensive regulation that will move crypto transactions beyond the narrow framework centered in Astana. The Digital Assets Act was amended at the beginning of May, followed by additional regulations to legalize crypto-related money flows later in the month.
In this respect, the new license marks the first platform accepted into the broader regulated digital asset market in Kazakhstan. The step comes at the same time as ongoing operations against illegal transaction activities. Local authorities announced that approximately 130 illegal transaction points, which were closed as of the beginning of 2026, carried out a total of $127 million in digital asset transactions. As part of the investigations, various assets worth more than 5 million dollars were also seized.
A new initiative in crypto payments is on the agenda
Astana management suspects that there is a significant outflow of capital through cross-border transfers through crypto assets. President Kasım Cömert Tokayev also asked the authorities to stop this money outflow.
However, the country is also taking steps to bring crypto payments closer to legal ground within its jurisdiction. Tenge will be preserved as the only legal tender for direct purchases. However, crypto asset holders will be able to pay for goods and services through crypto cards that instantly convert into fiat money.
