Government officials in Kazakhstan have approved a new rule to guide interactions between authorised crypto trading platforms and traditional finance companies. The rules allow registered exchanges to also have bank accounts.
Pilot Projects to Help Develop Kazakhstan into a Regional Hub
Regulations that support crypto exchanges which are already registered at the Astana International Financial Centre (AIFC) to be serviced by second-tier banks in Kazakhstan and have been approved by representatives from the Ministry of Digital Development, the financial regulators, and members of the digital asset sectors, according to the ministry.
This initiative is part of the larger country’s project aimed at introducing a regulatory framework to facilitate Kazakhstan’s growth into a global crypto and blockchain hub. It will be implemented as a pilot in 2022, with the participation of exchanges led by AIFC Financial Services Authority (AFSA), according to the press release by the Kazakhstan administration.
When China banned mining in the country last year, most miners migrated to Kazakhstan. According to Bagdat Mussin, the Digital Development Minister, the crypto industry does not only include mining but also digital wallets, crypto exchanges, and blockchain platforms.
“It is like other industries, which can and should work for the benefit of our economy. We must make money on crypto exchange — this is the next level of development of financial technologies,” read a statement from the high-ranking official.
The Pilot Will Give Way to Changes in Kazakhstan’s Legislation
Musin indicated that the country needs to create a complete ecosystem so that digital assets mined in the country are traded in the local exchanges, and income remains in the jurisdiction.
According to the Digital Ministry, the pilot project will allow regulated trading of cryptocurrencies for enhanced protection of retail and professional investors. When implemented successfully, the authorities in the country aim to amend the country’s legislation and AIFC.
AIFC Financial Regulatory Committee is the body responsible for the fintech firms in the country. “Our goal is to create an environment in which only trustworthy and stable companies that enjoy the trust of customers would operate,” explained Nurkhat Kushimov, the AFSA Director.
These positive developments are coming at a time when the National Bank of Kazakhstan noted that it was too early to talk about legislation on cryptos. In addition, the monetary authority indicated that it intends to capitalise on cryptos and blockchain technology to drive economic growth.