Kazakhstan Allows Registered Crypto Exchanges to Open Accounts at Local Banks – A working group comprised of representatives from the Ministry of Digital Development, the central bank, financial regulators, and members of the financial and digital asset sectors adopted regulations allowing crypto exchanges registered at the Astana International Financial Center (AIFC) to be serviced by second-tier banks in Kazakhstan, according to the ministry.
The initiative is part of a larger project to establish a regulatory framework that would help Kazakhstan realize its potential as a regional crypto hub. According to a press release, it will be implemented as a pilot throughout 2022, with crypto trading platforms regulated by the AIFC Financial Services Authority (AFSA) taking part.
When China cracked down on cryptocurrency mining in May of last year, Kazakhstan became a hotspot for miners. However, according to Digital Development Minister Bagdat Musin, the crypto industry includes crypto exchanges, digital wallets, as well as other blockchain platforms in addition to mining.
According to the high-ranking government official:
“It’s similar to other industries that may and should contribute to the growth of our economy. We need to make money on the crypto exchange – this is the next step in financial technology development.”
Musin insisted that Kazakhstan create a full-fledged ecosystem so that digital assets extracted with the country’s electricity are traded on local exchanges and the resulting income stays in Kazakhstan.
The Digital Ministry stressed that the pilot project will allow for regulated digital currency trading, ensuring that both retail and professional investors are properly protected. The authorities in Nur-Sultan intend to amend the country’s legislation and the statutes governing the AIFC if it is implemented successfully.
According to AFSA Director Nurkhat Kushimov, the AIFC Financial Services Regulatory Committee is now the only body in Kazakhstan that oversees the activities of fintech firms. He emphasized that all entities requesting for a license are properly examined and supervised. “Our goal is to create an environment where only trustworthy and steady companies with customer trust can operate,” the official stated.
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Kazakhstan Allows Registered Crypto Exchanges to Open Accounts at Local Banks – The positive development for the local crypto business follows a recent statement by Kazakhstan’s National Bank, which stated that it is actively monitoring the market while notifying that it is too early to discuss cryptocurrency legalization. At the same time, the monetary authority stated that it plans to capitalize on crypto technology potential for innovation.
