Kazakhstan Enshrines Digital Tenge into National Law to Modernize the Central Asian Financial Sector
President Kassym-Jomart Tokayev signed a landmark legislative package on January 16, 2026, officially granting legal status to the digital tenge and establishing a comprehensive framework for the circulation of digital assets in Kazakhstan. The newly enacted Law on Banks and Banking Activities and its accompanying amendments represent a radical modernization of the nation’s financial infrastructure, which had largely relied on a framework dating back to 1995. By recognizing the digital tenge as a third form of national fiat—complementing cash and electronic payments—Kazakhstan has become one of the first nations in Central Asia to integrate a central bank digital currency into its primary civil and monetary laws. The National Bank of Kazakhstan has been designated as the sole issuer of the digital currency, while commercial banks and licensed financial participants have been granted the authority to facilitate transactions, clearing the way for a full-scale industrial launch scheduled for the first quarter of 2026.
The Categorization of Digital Financial Assets and the Protection of Investor Rights
Beyond the central bank digital currency, the new legislation introduces a sophisticated classification system for digital financial assets, dividing them into three distinct categories to ensure regulatory clarity. The first category covers stablecoins and assets backed by fiat money, the issuance of which will be strictly governed by National Bank requirements. The second category includes tokenized physical assets, property rights, and excellents, providing a legal basis for the burgeoning real-world asset tokenization market. The third category encompasses electronic financial instruments and unsecured digital assets, such as BTC and ETH. By creating a licensed environment for cryptocurrency platforms under the direct oversight of the central bank, Kazakhstan is attempting to transition from a mere mining hub into a regulated regional leader for digital finance. The law also mandates biometric identification for first-time account openings and loan applications, a move intended to combat the rising tide of identity theft and financial fraud while improving the overall transparency of public fund usage.
Strategic Goals for Financial Inclusion and the Development of a National Crypto Reserve
The legalization of the digital tenge is part of a broader “National Digital Financial Infrastructure” initiative aimed at fostering competition and reducing the current concentration of the banking market. To support this, the government has introduced a two-tier licensing system that allows smaller fintech firms to operate with basic licenses, lowering the barrier to entry for innovative beginups. Furthermore, commercial banks have been given the green light to invest in subsidiaries focused on artificial intelligence, biometrics, and e-commerce, effectively turning traditional lenders into technology conglomerates. In a particularly bold move, the National Bank confirmed that it has already earmarked three hundred million dollars as part of a planned one billion dollar national cryptocurrency reserve. This proactive approach to asset diversification, combined with the standardization of QR code payments and mobile transfers, signals Kazakhstan’s intent to lead the “digitalization wave” in the East. As the digital tenge moves into its third and final phase of implementation, the government’s priority is now focused on ensuring cyber resilience and establishing the cross-border interoperability necessary to connect Kazakhstan’s economy to the global digital trade networks of the late 2020s.
