The Kazakhstan government has approved regulations to govern interactions between authorized crypto trading platforms and traditional financial institutions. Crypto exchanges, through the new rules, can have bank accounts in the country.
Kazakhstan is working on a project to introduce a regulatory framework to facilitate and help grow the country as the regional crypto hub. The Ministry of Digital Development, the central bank, financial regulators, and various financial and digital asset sectors have formed a working group as part of the initiative. Crypto trading platforms licensed by the AIFC Financial Services Authority (AFSA) are participating.
The AIFC Financial Services Regulatory Committee oversees the activities of fintech firms in Kazakhstan. Nurkhat Kushimov, the body’s director, said all entities looking for a license are thoroughly checked and supervised. He explained that the committee’s goal is to create an environment in which only trustworthy and stable companies would operate.
Bagdat Musin, the Digital Development Minister, pointed out that Kazakhstan’s crypto industry is not only about mining. It should be noted that when China cracked its whip on the crypto sector in the country, most of the crypto mining firms and individuals moved out. The majority of them found acceptance and willingness in the Central Asian nation. Musin said the industry includes crypto exchanges, digital wallets, and blockchain platforms. He believes it’s quite similar to other industries which can and should work for the benefit of Kazakhstan’s economy.
The minister says Kazakhstan must make money on crypto exchange as it’s the next level of development of financial technologies. The country needs to create a full-fledged ecosystem for digital assets extracted using Kazakhstan’s electricity, are traded on local exchanges. As such, the respective income will remain in the country.