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Kazakhstan
5.52 Neutral Environment
Despite the fact that Kazakhstan is one of the ten largest countries in the world, it had not been seen on the Bitcoin world map until 2016. In 2015, the Bitcoin community of Kazakhstan consisted of local entrepreneurial enthusiasts, whose efforts resulted in launching the first Bitcoin center aimed at promoting cryptocurrencies among the population. At that time, the overall atmosphere around the subject could be characterized as disregard by ordinary citizens and distrust of politicians and officials.
In general, the blockchain ecosystem and operations with cryptocurrencies were evolving slowly in Kazakhstan in 2015–2016, the public space was characterized by cautious or skeptical statements by officials, and such a situation persisted until mid-2017. In January 2017, the National Bank of Kazakhstan made a statement that it did not regulate cryptocurrency transactions in any way and that they were risky. But in the summer of 2017, several statements were made regarding the adoption of a modernization economic policy, the recognition of cryptocurrency at the state level, and the active creation of enabling environment for blockchain and the cryptocurrency industry. President of Kazakhstan made a proposal to introduce a global currency. According to Nazarbayev, the introduction of a global currency is possible through creating a pool of central banks, for example, under the leadership of a specialized UN committee. After such statements by the Head of State, the situation with state regulation of transactions with cryptocurrency started to evolve more actively. The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan reported that the working group on improving the national economy was widely discussing the practice of using the blockchain technology. President of Kazakhstan Nursultan Nazarbayev issued a decree on the establishment of the Astana International Financial Centre (AIFC) and the official opening of the centre took place on July 5, 2018. Astana International Financial Centre (AIFC) has a working group for elaborating regulatory legal acts and digital assets management requirements. The group elaborated a concept that describes the key terms as well as legal framework for regulating cryptocurrency circulation, including ICOs ("The Concept of Legal Regulation of the Cryptocurrency Market and Private Placement of Securities"). According to local analysts, Kazakhstan will unleash its potential to use the blockchain technology in the public administration and financial sectors in the near future, while the creation of the AIFC's working group will consolidate the vector of development of the blockchain technology in the country.
Neutral Political Environment
6.0 points
The issues related to the development of blockchain technologies and the regulation of cryptocurrencies in Kazakhstan have recently become increasingly prominent at the state level, which can be explained by serious plans to modernize the economy and the desire of the political elite to increase the investment attractiveness of the country. Considering the existing global trends, the country's top leadership pays close attention to exploring the possibilities of blockchain and cryptocurrency business and is ready to support research projects in this area. At the same time, the government and parliament of Kazakhstan do not have a clearly formulated position on this issue, and the level of their interest in the subject and activity directly depend on the line voiced by the head of state. The president in his turn sets the course for the digitalization of the economy, notes the possibility of using blockchain in various fields, and proposes the introduction of a global cryptocurrency. At the same time, he demonstrates an approach that involves launching certain centralization processes, while the driving idea behind blockchain is the combination of freedom, security, and decentralization.
Rather not Enabling Legal Environment
2.04 points
Regulatory Convergence
Regulation of relations in the sphere of cryptocurrencies and blockchain is not within the competence of a single body in Kazakhstan and cannot rely on the comprehensive corresponding legislation in the area since it is still not adopted. The National Bank of Kazakhstan acts as a current regulator which tends to hold a prohibitive policy, as well as the Ministry of Finance, which described cryptocurrency taxation.

Definiteness of Legal Regulation
In Kazakhstan, there is no comprehensive legislation specifically designed to regulate relations in the domain of blockchain and cryptocurrencies. Most legal aspects of the crypto industry are not settled (the status of cryptocurrency, crypto business, ICOs) or there are prohibitive explanatory statements by various agencies (financial institutions are not allowed to conduct operations with cryptocurrencies). In fact, the taxation of mining and cryptocurrencies is the only issue to be regulated by analogy.

Stability of Legal Regulation
The steps taken to formulate the legal status of cryptocurrencies and define the rules for the fintech industry in Kazakhstan are important, but insufficient; the law-making in the area is not finished yet, so a new law might arrive soon.

Adequacy of Legal Regulation
The situation with legal regulation is rather neutral, but unstable. The new favorable regulation for cryptocurrency projects is likely to be introduced. The Astana International Financial Centre plays a major role in the implementation of this plan, acting as a regulatory sandbox where banks, financial institutions, and start-ups can operate and test different projects and ICOs. However, the National Bank's proposal for a legislative ban on cryptocurrency trading and mining in Kazakhstan and providing access to ICOs to qualified stakeholders exclusively may undermine the very democratic nature of the industry and discourage potential investors.
Situation with the Rule of Law
Kazakhstan has low indicators of the rule of law, ranking 64th in the world among 113 countries. The conditions of the legal regulation of blockchain and cryptocurrencies are neutral, and since the values of the sub-criterion of the rule of law are low (0.51), the amount of the difference between weighted (multiplied by Rule of Law Index score) and unweighted assessments are significant. This indicates high risks associated with the general conditions of compliance with legal safeguards in Kazakhstan.
Enabling Infrastructure Environment
8.51 points
Kazakhstan ranks 39th among 193 countries in the UN Global E-Government Development Index.

Kazakhstan also has relatively high business environment development indicators ranking 36th in the world.