KPMG Caucasus and Central Asia, the Astana International Financial Centre, the National Payment Corporation of Kazakhstan, Mastercard, RISE Research in collaboration with Freedom Horizons conducted a market analysis of Digital Financial Assets (DFAs) in Central Asia and the Caucasus.
As part of the study, over 35 in-depth interviews were conducted with leading experts in the fields of cryptocurrency and digital financial assets. The experts analyzed and compared the development of the DFA sector across five countries in Central Asia and the Caucasus, reconstructed the chronological development of regulatory frameworks in the region, mapped the key ecosystem participants, and examined global and regional trends in the space.
According to the study, tax revenues from licensed digital asset service providers in the Astana International Financial Centre (AIFC) show steady growth, reaching $367,000 in the first eight months of 2024.
Meanwhile, mining revenues, though significantly higher, are subject to volatility due to changes in tax policies and electricity shortages. In 2023, digital mining contributed approximately $16.4 million to the state budget, while in the first ten months of 2024, this figure reached $10.4 million.
The cryptocurrency industry in Central Asia and the Caucasus is experiencing steady growth, in line with global trends. A regulatory and legal infrastructure has already been established in the region that supports both cryptocurrency trading and the development of new business models utilizing blockchain technology. This research provides market participants with a deeper understanding of the region's potential, emerging trends, and barriers, amid the increasing interest in virtual assets.
Kazakhstan is demonstrating rapid progress in the field of digital assets by uniting the efforts of the government, financial institutions, and international partners. Through the creation of a legal framework within the AIFC, large-scale tokenization projects with Mastercard and KASE, the development of the digital tenge, and the launch of crypto cards, the country is strengthening its position as a regional leader in digital transformation and financial sector innovation.
The findings of the study can be accessed by registering via the link. For further inquiries, please feel free to contact us.
Konstantin Aushev
Partner, Head of Cybersecurity Group
KPMG Caucasus and Central Asia
E: kaushev@kpmg.kz
Yerke Assemova
Associate Director
KPMG Caucasus and Central Asia
Е: yassemova@kpmg.co.uz
Assel Khamitova
Manager
KPMG Caucasus and Central Asia
E: akhamitova@kpmg.kz