Kazakhstan’s government has made laws about how authorized cryptocurrency trading platforms and traditional financial institutions can trade with each other. If a trading platform is registered, the new laws will let them open bank accounts in the country.
A working group made up of people from the Ministry of Digital Development, the central bank, and financial regulators, as well as people from the financial and digital asset sectors, has approved regulations that will let second-tier banks in Kazakhstan serve crypto exchanges registered at the Astana International Financial Center (AIFC).
The proposal is part of a larger effort to set up a legal framework that would help Kazakhstan realize its potential as a regional crypto center. According to a press release, it will be tested as a pilot program in 2022, with crypto trading platforms regulated by the AIFC Financial Services Authority (AFSA) taking part.
When China made it harder to mine cryptocurrency in May of last year, miners migrated to Kazakhstan. But Digital Development Minister Bagdat Musin says that the crypto business is more than just mining. It also includes crypto exchanges, digital wallets, and other blockchain platforms, he says. According to the government official in a high position,
It’s like other parts of our economy that can and should help our economy grow. We need to make money on the cryptocurrency exchange, which is the next step in the development of financial technology.
Musin asked Kazakhstan to build a full-fledged ecosystem so that digital assets made possible by the country’s power could be traded on local platforms and the money made from this would stay in Kazakhstan.
The Digital Ministry emphasized that the pilot project would allow for regulated trading of digital currencies, which would protect both small and large investors. If the AIFC works well, the government of Nur-Sultan plans to change the country’s laws and the rules that govern it.
Nurkhat Kushimov, who is the director of AFSA, says that the AIFC Financial Services Regulatory Committee is the only group in Kazakhstan that is in responsible for supervising how fintech companies work. He stressed that all businesses that want a license are properly checked out and kept an eye on. “Our goal is to create an environment where only trustworthy, stable businesses that consumers can trust can run,” the official said.
The good news for the local crypto business comes after Kazakhstan’s National Bank said that it is actively watching the market but that it is too soon to talk about whether or not cryptocurrencies are legal. At the same time, the monetary authority said it plans to use the potential for innovation in crypto technology.