Kazakhstan rolls out USD-pegged stablecoin for regulatory fee payments

Kazakhstan has become the first country in Central Asia to permit the payment of license and supervision fees in a USD-pegged stablecoin. The decision, announced by the Astana Financial Services Authority (AFSA) on September 5 at the Astana Finance Days 2025 forum, marks a major step toward integrating digital assets into formal financial regulation.

The initiative allows firms operating in the Astana International Financial Centre (AIFC) to pay required fees in stablecoins such as Tether’s USDT or Circle’s USDC, alongside traditional fiat currencies. AFSA officials say the project is designed to reduce transaction costs, increase transparency, and align Kazakhstan with global digital finance trends.

“This initiative represents a first-of-its-kind regulatory framework for payments in stablecoins in the region, signaling Kazakhstan’s ambition to position the AIFC as a hub for digital finance,” — Evgeniya Bogdanova, CEO, AFSA.

Why stablecoins are replacing fiat-only payments

Previously, AIFC members were required to pay fees through bank transfers or wire payments in U.S. dollars or Kazakhstani tenge. While functional, these methods often resulted in delays and higher costs, particularly for firms whose treasuries are managed in digital assets.

Bybit, the centralized exchange that signed the first memorandum of understanding (MMoU) with AFSA, noted that using a USD-pegged stablecoin offers efficiency gains.

“These methods are functional but often involve delays, high transaction costs and limited flexibility, especially for firms whose primary treasury is held in digital assets,” a Bybit spokesperson explained.

By leveraging a USD-pegged stablecoin, participants can avoid the inefficiencies of legacy payment systems, creating a faster and more predictable regulatory process.

Eligibility and participation rules

Participation in the program requires firms to sign an MMoU with AFSA and meet eligibility criteria set by the regulator. Bybit became the first signatory, with AFSA confirming that the names of other approved providers will be published on its website.

The project reflects a carefully controlled rollout rather than a wholesale shift. While the regulator has not yet disclosed detailed eligibility requirements, it emphasized that firms must demonstrate compliance capabilities before joining the program.

Jesse Knutson, head of operations at Bitfinex Securities which has operated in Kazakhstan since 2021 described the move as a significant milestone.

“AFSA led the way by becoming one of the first to develop a regulatory regime for the issuance and listing of tokenized securities, and they are again a first-mover in accepting USDt and others as a fungible currency for their own regulatory fees,” Knutson told reporters.

Kazakhstan’s broader crypto strategy

The adoption of USD-pegged stablecoin payments comes amid wider efforts to integrate digital assets into Kazakhstan’s financial system. In August, Fonte Capital, with support from U.S.-regulated custodian BitGo, launched Central Asia’s first spot Bitcoin ETF.

Kazakhstan has also played a central role in the global crypto mining industry, ranking among the top countries for Bitcoin hash rate. In June, government officials revealed they were studying the feasibility of a state-run crypto reserve, potentially funded through seized or mined digital assets.

These initiatives align with the government’s ambition to diversify its economy and leverage blockchain for financial modernization. Allowing a USD-pegged stablecoin for regulatory fees further signals Kazakhstan’s desire to balance innovation with oversight.

“Stablecoins have become indispensable in linking traditional and digital markets,” said a regional financial analyst based in Almaty. “Kazakhstan’s decision to use them for official fees could encourage similar experiments in neighboring markets.”

Regional and global implications

By permitting regulatory fees in a USD-pegged stablecoin, Kazakhstan positions itself as a leader in digital finance across Central Asia. The approach may influence neighboring jurisdictions considering how to integrate stablecoins into financial infrastructure.

For global policy makers, the move illustrates how stablecoins are moving beyond speculative trading into practical government use cases. It also raises questions about oversight, monetary sovereignty, and the role of private issuers in public financial systems.

As other governments in Europe and Asia explore tokenization and central bank digital currencies, Kazakhstan’s early adoption of a USD-pegged stablecoin could serve as a test case for regulatory innovation in emerging markets.