Contemplating the Launch of Cryptocurrency Financial Institutions in Kazakhstan
Rewritten Article:
ASTANA - Kazakhstan could see the emergence of crypto banks, potentially shaping a robust digital ecosystem, according to Prime Minister Olzhas Bektenov. He made this statement in response to queries from members of the Mazhilis, the lower house of Parliament, on April 25.
[Image credit: Kazakhstan Today]
As per the Mazhilis, Prime Minister Bektenov mentioned that crypto banks would perform fundamental tasks such as digital asset exchange, storage, and transaction support within the burgeoning ecosystem. These tasks would be handled by infrastructure entities that already operate under the jurisdiction of the Astana International Financial Centre (AIFC), including providers of cryptocurrency exchange transactions, digital asset platform operators, custodians, brokers, and dealers.
These entities will be able to offer a broad array of digital services akin to international industry standards and within a secure, regulated environment.
The government is working on legislation aimed at making it easier for digital assets to move freely and expanding the number of platforms for their exchange. A significant focus is on the development of related financial institutions.
Crypto banks would extend comprehensive banking services to new players in the digital market, boost the transparency of digital transactions, and comply with rules against money laundering and the financing of terrorism. They would also play a pivotal role in digital asset projects, fostering advancements in internal IT developments and blockchain technologies.
"Crypto banks will increase the attractiveness of this jurisdiction for investors, demonstrating the maturity of Kazakhstan's financial infrastructure in the context of decentralized finance," Bektenov explained, adding that the creation of such institutions would drive demand for new specialists, particularly in compliance, blockchain analysis, and anti-money laundering, and would also spur the growth of fiat and digital asset liquidity within the AIFC."
Although specifics about the legislative amendments for crypto banks' establishment and regulation in Kazakhstan are not fully detailed, the government is working towards creating a more advantageous regulatory environment for crypto activities, with the support of both domestic and international financial institutions.
. Enrichment Data:The existing information does not provide specific details about the legislative amendments designed for regulating crypto banks in Kazakhstan. However, the government is planning to:
- Liberalize the approaches of regulators, enabling payment service providers to facilitate crypto exchanges on par with second-tier banks.
- Simplify regulations for legal entities investing in digital assets.
- Establish a regulatory framework for crypto banks to ensure proper oversight and transparency.
- Anchor crypto banking infrastructure under the Astana International Financial Centre (AIFC), with existing AIFC entities managing various cryptocurrency services.
- Combat money laundering and terrorism financing by focusing on compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations within crypto banking operations.
- The emergence of crypto banks in Kazakhstan, as suggested by Prime Minister Bektenov, could be facilitated by legislative amendments aimed at simplifying regulations for legal entities investing in digital assets, and establishing a regulatory framework to oversee these banks effectively.
- In the digital ecosystem envisioned by Kazakhstan's Prime Minister, technology will play a crucial role in crypto banks, with infrastructure entities under the Astana International Financial Centre (AIFC) utilizing blockchain technologies and internal IT developments for advancements in crypto banking services.
