Kazakhstan is, by and large, a crypto-friendly country. The country emerged as a crypto mining hub in 2021 as miners shifted base to Kazakhstan after China banned all cryptocurrency-related activities. At one point, it was estimated to be the world’s second-largest Bitcoin production base.
Cheap electricity and a temperate climate with mild summers and long winters along with government encouragement provided a conducive environment for cryptocurrency mining in Kazakhstan.
However, cryptocurrency mining is an energy-intensive process and the country started cracking down on the crypto mining industry in late 2021 as it faced power shortages. The power supply to crypto mines was cut off and taxes were introduced.
Since then, legislations have been introduced for better regulation of the crypto industry while Kazakhstan looks to develop the broader crypto industry. All this laid the foundation for better development of the cryptocurrency trading industry in Kazakhstan.
While crypto trading is forbidden except in the Astana International Financial Centre, Kazakhstan in general is enthusiastic about encouraging cryptocurrency and blockchain development.
There are several crypto exchanges that have set up shop in the country. We have compiled a list of the most prominent exchanges operating in Kazakhstan.
Top 7 Cryptocurrency Exchanges Operating in Kazakhstan
Binance
Binance is a licensed exchange in Kazakhstan and offers endless possibilities for Kazakh traders. From simple buy/sell transactions to swap farming and P2P trading, you are bound to find something suitable for you on Binance.
While trading fees on Binance are already on the lower end of the spectrum, using its native BNB Coin for transactions can get you further discounts. Trading on Binance is, therefore, quite economical.
Shoppers can also get a Visa-powered Binance card that can be used for making payments with crypto assets. The 8% BNB cashback on eligible transactions makes it all the more alluring. On the flip side, business owners can receive payments in cryptocurrency via Binance Pay.
Beyond that, Binance also enables users to check out NFTs and dip their toes in the world of IGOs and fan tokens.
Features
✔️Biggest cryptocurrency exchange in the world
✔️350+ cryptocurrencies available
✔️NFT marketplace with IGOs and fan tokens
✔️Native coin is called BNB Coin
Pros and Cons
✅Licensed exchange ❌Not suitable for beginners
✅Fantastic coin selection ❌Past security breach incidents
✅Binance card with cashback
✅Low trading fees
Trading Fees
Trading fees for Binance
Customer Reviews
The Visa card offered by Binance is liked by users
Binance can be complicated to use
Why We Picked It
Binance is an excellent option if you have some prior experience with crypto trading. There is a wide variety of cryptocurrencies available, several trade types including P2P trading are supported and even a marketplace is available for NFT enthusiasts.
Coinbase
Coinbase is among some of the oldest and most reputable cryptocurrency exchanges in the world. A publicly traded company, it is the first major crypto firm to be listed on NASDAQ. Unlike Binance which can be sometimes overwhelming, Coinbase is a simple platform.
Its collection of 250+ tradable assets is at par with most major exchanges and its interface is straightforward and intuitive which is perfect for inexperienced traders. The Coinbase mobile app is similar to its web platform with all the functionalities of the latter.
Coinbase has a specialized Pro version for expert traders who may want more from a crypto exchange than simple buy/sell features. It offers, among other things, advanced charting and market tracking and portfolio management tools.
Features
✔️Second-biggest cryptocurrency exchange in the world
✔️250+ tradable assets available
✔️Basic and Pro platforms
✔️Assets stored in cold wallets
Pros and Cons
✅Great crypto selection ❌Higher fees on basic platform
✅Financial transparency ❌Customer service is not up-to-the
✅User-friendly exchange mark
✅Mandatory 2FA for account security
Trading Fees
Trading fees for Coinbase
Customer Reviews
Coinbase is a safe and secure exchange for crypto trading
Fees for transactions can be very high on Coinbase
Why We Picked It
Coinbase has been a trusted exchange for years and is the first major crypto firm to be listed on NASDAQ. It is obligated to adhere to certain transparency and accountability standards. While Coinbase may not be the cheapest exchange in terms of fees, it has a wide variety of cryptocurrencies, a solid mobile app and requisite security measures in place.
Kraken
Like Coinbase, Kraken has specialized platforms catering to different trader demographics. The basic version is meant for beginner traders while the Pro platform is geared towards advanced traders. There are several differences between the two versions including the way trading fees are determined.
On Kraken Instant Buy, dynamic factors such as market conditions, asset type, order size and payment method come into play while charging trading fees. Conversely, Kraken Pro just uses the maker-taker system for determining fees.
Apart from spot trading, you can indulge in margin and futures trading and invest in crypto indices. In addition, it also offers OTC services to users. Kraken is one of the most liquid exchanges with low spreads which makes for a nearly flawless trading experience.
Kraken is a platform committed to security and therefore, it complies with all required KYC norms. However, there may be limits put on the amount you can deposit and withdraw depending on your verification level. For account security, you need to enable 2-factor authentication(2FA) and set up Global Settings Lock(GSL).
Features
✔️Over 200 cryptocurrencies available
✔️Two versions- basic and pro platforms
✔️KYC, 2FA and GSL for security
✔️Proof-of-reserves published on website
Pros and Cons
✅Decent crypto collection ❌Higher fees on basic version
✅Several trading types
✅Extensive learning material
✅Lower fees on Kraken Pro
Trading Fees
Trading fees for Kraken Instant Buy
Trading fees for Kraken Pro
Customer Reviews
Kraken is an excellent exchange with decent customer support
Users have found their accounts being locked on Kraken
Why We Picked It
Kraken is a fine exchange once you familiarize yourself with the layout of the platform. It supports several types of trades and also offers crypto indices. There is a wide variety of educational material about cryptocurrency available on Kraken.
Crypto.com
Crypto.com is a popular exchange with over 80 million users as of 2023. However, unlike its contemporaries, Crypto.com is focused entirely on its mobile app. It seeks to promote trading on the go with its mobile app.
It has over 250 cryptocurrencies and you can trade 500+ pairs with up to 5x leverage for margin trading. Crypto.com also supports derivatives trading and offers a healthy choice of 100+ perpetuals, quarterly futures as well as warrant contracts. Further, you can get discounts by staking Cronos(CRO) coin.
Crypto.com runs a referral program where you can get rewards for inviting your friends to the platform. The exchange is ISO 27001 certified and makes sure all accounts have enabled multi-factor authentication(MFA).
Like most crypto exchanges, it stores the majority of the user assets in offline cold wallets.
Features
✔️250+ cryptocurrencies available
✔️Native coin is Cronos(CRO)
✔️Supports crypto lending
✔️In-built crypto wallet
Pros and Cons
✅Great coin selection ❌Inadequate educational resources
✅20+ assets for staking ❌Not a very good option for beginners
✅Cold storage for assets
✅Referral program
Trading Fees
Trading fees for Crypto.com
Customer Reviews
The Crypto.com app is excellent for trading
Users have had trouble with withdrawals on Crypto.com
Why We Picked It
The Crypto.com app has intriguing features that are worth checking out once. The trading fees here are competitive and the platform gives more discounts for staking CRO. It has a lucrative referral program and many staking opportunities.
CEX.io
The concept of CEX.io revolves around removing barriers to cryptocurrency trading and making it accessible for everyone. This is reflected in the exchange’s simple and intuitive design.
With 200+ cryptocurrencies available for trading, CEX.io is a decent option to start your crypto journey.
On this platform, traders are divided into three categories to provide a better trading experience to each demographic. ‘Everyone’ can use the Instant Buy feature to immediately buy cryptocurrencies and use any of the supported mediums for payments.
On the other hand, ‘Traders’ can participate in spot and margin trading on CEX.io. ‘Businesses’, meanwhile, also get access to institutional-grade services with CEX.IO PRIME. Here, all data is encrypted for security and privacy and cold storage is used for keeping user assets and funds.
Features
✔️200+ cryptocurrencies available
✔️Three-tier division of users
✔️Regulated exchange in many places
Pros and Cons
✅Wide variety of crypto coins ❌Verification process can be tedious
✅Earning opportunities ❌Liquidity is not very high
✅Decent customer service
✅Spot fees are on the lower end
Trading Fees
Trading fees for CEX.io
Customer Reviews
CEX.io provides a smooth trading experience
Deposits may be withheld on CEX.io
Why We Picked It
CEX.io is quite simple and accessible as far as cryptocurrency exchanges go. It is a licensed exchange in several territories and implements all the industry-standard security measures. There are decent assets available and the trading fees are quite competitive too.
Upbit
Upbit is a South Korean cryptocurrency exchange owned by the fintech firm Dunamu. Although primarily geared towards the Korean market, it has started expanding overseas in the past few years and now also offers its services in Kazakhstan.
It offers about 180 cryptocurrencies for trading which is on par with other exchanges of its level. Upbit is an exchange that is known for its slick design and usability. You can easily check market data and real-time trends here and even get access to some great charting tools.
Upbit takes security very seriously and hence, requires every account on the platform to be KYC-verified. Besides security purposes, KYC verification also enables you to access higher deposits and withdrawals limit.
Further, Upbit also encourages users to set a second password that is to be used while withdrawing funds.
Features
✔️180+ cryptocurrencies available for trading
✔️Korean Won is the only fiat supported
✔️Android and iOS app available
Pros and Cons
✅Decent coin selection ❌No margin trading
✅User-friendly platform
✅Deposits are free
✅Reliable exchange
Trading Fees
Trading fees for Upbit
Why We Picked It
Upbit is well-established and popular and backed by firms like Bittrex. It is a perfectly fine option if you’re just casually getting into cryptocurrency and want to do nothing more than buy, sell or hold some cryptocurrency.
Bitstamp
Bitstamp was launched in 2011 and has been a trusted cryptocurrency exchange till then. It is a fast and reliable exchange that has been registered as a Payment Institution in Luxembourg since 2016. Bitstamp checks off nearly all the things you could ask for in a cryptocurrency exchange.
Though the number of assets available for trading is on the lower end, Bitstamp makes up for it by providing bank-grade security and insurance to users. There are instant deposit options available and even instant cash out is possible in some places.
The Bitstamp exchange has launched two apps for traders. The main app can be used by both new and experienced traders and supports several popular payment options including bank transfers, debit/credit cards and PayPal.
The Bitstamp Pro app, however, caters more to professional traders and crypto experts. Along with the functionalities of the web exchange, it gives users access to real-time charts, order books and sophisticated analytical tools.
Features
✔️One of the oldest exchanges out there
✔️82 assets available for trading
✔️Web version and mobile apps available
Pros and Cons
✅Licensed in several countries ❌No margin trading
✅Mandatory KYC ❌Limited staking options
✅Acceptable trading fees
✅Navigable exchange
Trading Fees
Trading fees for Bitstamp
Customer Reviews
Bitstamp is well-established and trusted by users
Reports of problems with withdrawals on Bitstamp
Why We Picked It
Bitstamp is a safe, reliable and trusted exchange. It is an option suitable for both beginners and advanced traders. There are two apps launched by Bitstamp which are geared specifically towards novice and professional traders.
Top 3 Decentralized Exchanges in Kazakhstan
UniSwap
UniSwap is a famous decentralized exchange developed with the help of the Ethereum Foundation. Its success caused a spate of similar ‘Swap’ exchanges to be launched back to back.
Primarily used for ERC-20 token swaps, UniSwap is an Automated Market Maker(AMM)-based exchange with no central order books or other intermediaries to match crypto buyers and sellers.
It functions on the basis of smart contracts that define how liquidity pools are to be formed, liquidity is to be provided and assets are to be swapped.
Since this whole process is automated, UniSwap is more resistant to manipulation attempts and system attacks. While it is true that most decentralized exchanges are harder to use as compared to centralized ones, UniSwap is one of the few decentralized exchanges that can be termed beginner-friendly. You can quickly get a hang of it even if you don’t have much experience with cryptocurrency.
Features
✔️Largest decentralized exchange
✔️Constructed on the Ethereum blockchain
✔️Utilizes the AMM system
✔️Native utility token is called UNI
Pros and Cons
✅Access to several ERC-20 tokens ❌No vetting of listed cryptocurrencies
✅Buy NFTs with ERC-20 tokens ❌Ethereum gas fees can be
✅User-friendly platform costly
✅Governed in a democratic
manner
Trading Fees
Trading fees for UniSwap
Customer Reviews
UniSwap is a famous decentralized exchange running on Ethereum
UniSwap has no official system for registering complaints
Why We Picked It
UniSwap is a much more accessible platform for all types of crypto traders as compared to other decentralized exchanges. You just need a crypto wallet that you can connect to the exchange to start trading on UniSwap. It also allows you to conveniently buy crypto with your card or bank account.
PancakeSwap
PancakeSwap, although a ‘Swap’ exchange, was constructed on the BNB Chain and not Ethereum. The reason generally given is frequent congestion on the Ethereum network which leads to slow transaction processing and high gas fees. Using BNB Chain helps it avoid these problems and provide an overall better trading experience to users.
PancakeSwap is known for its attractive design, ‘food’ theme and innovative product suite. It has introduced several crypto-related products that may not be found elsewhere. PancakeSwap’s native CAKE token powers the whole ecosystem and there is even a dedicated syrup pool for CAKE staking.
Its StableSwap feature is used for swapping stable pairs with much more efficiency and lower slippage. Frequent Initial Farm Offerings(IFOs) give users early access to new tokens given that they fulfill certain criteria. Further, you can participate in lottery programs in PancakeSwap and get a chance to win CAKE tokens.
Features
✔️Developed on the BNB Chain
✔️Runs with the AMM system
✔️Native utility token is CAKE
✔️Compatible with major crypto wallets like Metamask
Pros and Cons
✅Access to many BEP-20 tokens ❌BTC is not available
✅Innovative products ❌Issue of scams and pump and
✅Multiple tiers for trading fees dump schemes
✅StableSwap for stable pair swaps
Trading Fees
Trading fees for PancakeSwap
Customer Reviews
PancakeSwap is an exchange quite liked by users
There is no system in place to vet coins on PancakeSwap
Why We Picked It
PancakeSwap makes trading fun with its colorful layout and food-based theme. Fees here are quite reasonable and charged according to the nature of the pair being swapped. Capital efficiency is high here and there are many products that are worth checking out at least once.
DODO
DODO is also an Ethereum-based decentralized exchange but with a twist. This is because instead of the AMM protocol which is commonly used by most decentralized exchanges, DODO has adopted the Proactive Market Maker(PMM) system. This platform utilizes oracles for functioning which act as a link between blockchains and real-time data.
This system helps the platform provide better liquidity and more price stability to users. DODO is, therefore, known for being a highly efficient exchange with low slippage, higher-than-average liquidity and no impermanent loss.
Apart from that, DODO gives all users the freedom to create a liquidity market on the platform. This can be done via the DODO Vending Machine given that you have a Web3 wallet. Liquidity miners would also like this exchange since the process is quite easy and there is no lock-up period for tokens. Instant redemption of your assets and rewards is, therefore, possible on DODO.
Features
✔️Developed on the Ethereum network
✔️Uses the PMM system
✔️Native utility token is DODO Coin
✔️Offers private pools for advanced traders
Pros and Cons
✅Lesser slippage ❌No fiat currency can be used
✅Eliminates impermanent loss
✅Anyone can make liquidity market
✅Token listing process is simple
Trading Fees
Trading fees for DODO
Why We Picked It
With PMM, DODO has managed to avoid nearly all the problems faced by AMM-based decentralized exchanges. It has high liquidity and offers a great trading experience to users. Token listing is very easy here and liquidity miners don’t need to lock up their tokens for a specified time.
Is Crypto Legal in Kazakhstan?
Kazakhstan has adopted a liberal attitude towards cryptocurrency since the beginning. While it is not considered legal tender, the crypto mining business was particularly encouraged in the country. In 2020, the Kazakh President urged the country to attract $1.2 billion worth of cryptocurrency investment infrastructure within the next five years.
Kazakhstan was a major crypto mining hub until rising electricity demand by mining farms and power shortages in the rest of the country forced it to crackdown on the sector.
Although it had implemented registration requirements for crypto miners in 2022 itself, crypto exchange FTX’s collapse exacerbated the need for a regulatory framework for digital assets.
In early 2023, Kazakh lawmakers approved a bill known as “On Digital Assets in the Republic of Kazakhstan” which seeks to better regulate crypto miners and exchanges while developing a broader crypto ecosystem in the country.
The new law has introduced a licensing regime for both crypto miners and crypto exchanges. Digital asset exchanges are regulated by the Astana Financial Services Authority(AFSA) and need to obtain a license from the authority to start operations in the country.
Operating a digital asset exchange is considered a market activity and as such, exchanges have to comply with the Conduct of Business Rules and follow general requirements that are applicable to all financial institutions.
Interestingly, except for the Astana International Financial Centre(AIFC) area, crypto trading is forbidden in the rest of Kazakhstan.
Further, digital asset exchanges are required to warn traders of the risks of investing in unsecured digital assets. Kazakhstan has also mandated that atleast 75% of the digital assets mined locally have to be sold through government-approved crypto exchanges.
Conclusion
Kazakhstan is an interesting case study. The country seeks to develop the blockchain and crypto industry and actively encouraged crypto mining a few years back. Crypto trading, however, is allowed only in a specific region of the country(AIFC).
Though there are crypto exchanges in Kazakhstan and a regulatory framework for the same, there is not a vibrant crypto trading culture perse in the country as a whole. However, things may change with Kazakhstan’s pilot project with crypto exchanges being allowed to cooperate with banks for exchanging fiat for digital assets.
As of now, officially crypto trading is limited to AIFC and it is expected that the results from the pilot project will be used in the new draft framework for digital asset exchanges being developed by the AFSA.