Accounts At Local Banks - Kazakhstan Allows Cryptocurrency Exchanges To Open Local Bank Accounts
Kazakhstan's government has approved rules for how authorized platforms for trading coins and traditional financial institutions will work together. With the new rules, cryptocurrency exchanges that are registered in the country will be able to have accounts at local banks there.
Jun 20, 20228 Shares414 Views
Kazakhstan's government has approved rules for how authorized platforms for trading coins and traditional financial institutions will work together.
With the new rules, cryptocurrency exchanges that are registered in the country will be able to haveaccounts at local banks there.
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Pilot Project To Develop Kazakhstan Into Regional Crypto Hub
A working group made up of people from the Ministry of Digital Development, the central bank, financial regulators, and the financial and digital asset sectors, as well as crypto exchanges registered at the Astana International Financial Center (AIFC), has approved rules that will allow second-tier banks in Kazakhstan to serve crypto exchanges registered at the AIFC.
The plan is part of a project to set up a regulatory framework that will help Kazakhstan reach its full potential as a regional hub for crypto.
A press release said that it will be done as a pilot project in 2022, with crypto trading platforms licensed by the AIFC Financial Services Authority (AFSA) taking part.
When China cracked down on cryptocurrency mining in May of last year, many people moved to Kazakhstan.
Bagdat Musin, Minister of Digital Development, says that the crypto industry is more than just mining. It also includes crypto exchanges, digital wallets, and other blockchain platforms, he says.
The high-level government official went into more detail:
Musin insisted that Kazakhstan, which is in Central Asia, needs to build a full ecosystem so that digital assets made with Kazakhstan's electricity can be traded on local exchanges and the money from these trades stays in Kazakhstan.
The Digital Ministry emphasized that the pilot project will allow digital currencies to be traded in a controlled way, which will protect both small and large investors.
If it works, the Nur-Sultan government plans to change the laws of the country and the laws that govern the AIFC.
Nurkhat Kushimov, who is the director of AFSA, said that the AIFC Financial Services Regulatory Committee is now the only group in Kazakhstan that looks over the work of fintech companies.
He stressed that all organizations that want a license are carefully checked and watched.
"Our goal is to make a place where only reliable, stable businesses that have the trust of their customers can work," the official said.
In a recent statement, the National Bank of Kazakhstan said it is closely watching the market and that it is too early to talk about legalizing cryptocurrencies. This is good news for the local crypto industry.
At the same time, the monetary authority said it plans to take advantage of the potential for innovation that crypto technologies offer.
James Pierce
Reviewer
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