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Monday, December 5, 2022

Kazakhstan Will Now Allow Crypto Exchanges To Operate Bank Accounts

Kazakhstan is preparing to launch a cryptocurrency pilot project in the economic zone of Astana International Finance Center. This will provide exchange platforms to operate in a legal manner in the Astana International Finance Centre in this year itself.

The country has also taken steps to regulate crypto mining, but it has now taken a further step to bolster adoption of digital assets. This massive move comes right after CEO of Binance, Changpeng Zhao visited the country.

An exchange platform and some local banks of the country will collaborate in this pilot project. This news was announced by The Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan Republic.

The decision to approve the pilot project was taken by a special working group who have created the rules that shall be put to use while the exchanges interact with the banks.

More About The Crypto Pilot Project Of Kazakhstan

A collaboration between exchange platforms and Kazakhstani banks on the second tier will be made possible by this move. As mentioned above, reportedly, there was a special working group that formulated these guidelines that will be adhered by the crypto exchanges and the banks.

The concerned working group includes representatives of the Ministry of Digital Development, the National Bank, the Financial Monitoring Agency, The Association of Financiers, Astana International Finance Centre and also the finance and digital asset market stakeholders.

Reportedly, the pilot project will be operating till the end of 2022.

A partnership between a crypto exchange and a second-tier bank will also grant them a license that will allow them to deal with digital assets.

This license will be granted by the newly-formed Astana Financial Service Authority (AFSA). It shall also help draft a plan for further development of Kazakhstan as regional crypto hub.

The close guidelines shall be uploaded on the Astana International Financial Centre (AIFC) webpage.

Creating An Environment For Reliable And Sustainable Companies To Operate In The Country

Kazakhstan’s first steps at developing and formulating digital asset regulations were assisted by Binance, the world’s largest crypto exchange.

Kazakhstan reportedly planned to develop the cryptocurrency industry. With the help of Binance and the Key Ministries, the Astana Hub will evolve into an international digital asset hub.

Head of AFSA Nurhat Kushimov said that the mission of the committee is to be able to create an environment for sustainable and reliable companies, stated,

The Astana Financial Service Authority is the only entity responsible for regulating the fintech companies’ activities in Kazakhstan. Before handing out the license to a fintech company, we conduct a deep and thorough background check, and after that maintain its constant supervision.

In the month of May, the Kazakh parliament had passed in the first reading of the amendments to the national tax code to introduce crypto mining tax which will be tied to electricity price by the mining institutions.

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