Kazakh authorities have approved rules governing the interaction between licensed coin trading platforms and traditional financial institutions. The new rules will allow registered cryptocurrency exchanges to have bank accounts in the country.
A pilot project to develop Kazakhstan into a regional crypto hub
Regulations allowing crypto exchanges registered with the Astana International Financial Center (AIFC) to be serviced by second-tier banks in Kazakhstan have been approved by the Ministry of Digital Development, the Central Bank, the financial regulator, and the Financial and Digital Assets Sector, the ministry announced that the rules were adopted by a working group consisting of members of the Ministry of Digital Development, the Central Bank, financial regulators, and members of the financial and digital assets sector.
The initiative is part of a project aimed at introducing a regulatory framework that will facilitate Kazakhstan’s potential development as a regional crypto hub, with the participation of crypto trading platforms licensed by the AIFC Financial Services Agency (AFSA). The project will be implemented as a pilot throughout 2022, the press release detailed.
Kazakhstan attracted cryptocurrency miners when China cracked down on the industry last May. But according to Digital Development Minister Bagdat Musin, the crypto industry includes not only mining, but also crypto exchanges, digital wallets, and other blockchain platforms. The government official elaborated.
It is like any other industry, it can and should work for the benefit of our economy. We need to make money in crypto exchange – this is the next level of development of financial technology.
Musin argued that the Central Asian country needs to build a full-fledged ecosystem so that digital assets extracted using Kazakhstan’s electricity can be traded on local exchanges and the respective income stays in the country.
The Ministry of Digital emphasized that the pilot project would enable regulated trading of digital currencies and guarantee adequate protection for both private and professional investors. If its implementation is successful, the Nur Sultanate authorities will introduce amendments to the national legislation and the laws governing the AIFC.
The AIFC Financial Services Regulatory Commission is currently the only body overseeing the activities of fintech companies in Kazakhstan, noted AFSA Director Nurkhat Kushimov. All businesses applying for licenses are thoroughly checked and supervised, he stressed.” Our goal is to create an environment in which only trustworthy and stable companies that enjoy the trust of their customers will operate,” the official said.
The positive development for the local crypto industry came after a recent statement by the National Bank of Kazakhstan, which announced that it is following the market closely, noting that it is premature to talk about legalizing cryptocurrencies. At the same time, the monetary authority said it intends to take advantage of the innovation potential offered by crypto technology.
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