Kazakhstan’s Evolving Cryptocurrency Regulation
Kazakhstan’s regulatory landscape for cryptocurrency is set to undergo significant changes as the National Bank prepares to license crypto exchange services. These changes will formally recognize the status of businesses that convert cryptocurrencies into traditional fiat currencies under new national legislation.
New Classification for Crypto Service Providers
In a recent announcement, Yerlan Ashykbekov, who leads the payment systems department at the National Bank, revealed that a new classification for cryptocurrency exchange service providers will be introduced. These entities, which will operate under a licensing regime, will be monitored by the National Bank and will facilitate transactions allowing users to convert digital currencies into fiat.
Structured Legal Framework
The legislative update is set to create a structured legal framework for crypto exchange operators, defining their roles and responsibilities. The National Bank will also determine which cryptocurrencies these licensed exchanges can trade, ensuring further regulation in this space. Moreover, there will be oversight on platform operators that issue and manage digital financial assets, including popular stablecoins.
Distinct Environment for AIFC Exchanges
It is important to note that crypto exchanges functioning within the Astana International Financial Centre (AIFC) will adhere to a distinct regulatory environment. However, officials have expressed their intention to integrate this new network of licensed exchanges with the operations of AIFC trading platforms.
Presidential Support for Regulatory Improvement
This regulatory shift aligns with President Kassym-Jomart Tokayev’s ongoing push to establish a robust legal framework for the cryptocurrency sector in Kazakhstan. During a governmental meeting in January, he highlighted the pressing need for infrastructure supporting legal cryptocurrency transactions, pointing out that many users are currently navigating the sector in a regulatory gray area. This move is anticipated to enhance security and clarity for cryptocurrency users within the nation.
