Kazakhstan Will Now Allow Crypto Exchanges To Have Their Bank Accounts

Kazakhstan is all set to launch a cryptocurrency pilot project in the economic zone of Astana International Finance Centre. 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 been making progress in regulating crypto mining but now has taken a further leap in order to bolster digital asset adoption in the country. This massive move comes right after CEO of Binance, Changpeng Zhao visited the country.

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This pilot project will be a form of cooperation between exchange platforms and some local banks of the country. 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

This move will primarily facilitate a collaboration between exchange platforms and second-tier Kazakhstan banks. 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.

It also mentions that the partnership between the crypto exchange and second-tier banks will give the exchanges license that will allow them to handle digital assets or cryptocurrencies.

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.

Suggested Reading | Crypto Mining: Kazakhstan Collects $1.5M In Fees From Bitcoin Miners

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

World’s largest crypto exchange, Binance had helped Kazakhstan take its initial step at developing and formulating digital asset regulations.

The country was reportedly deciding 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.

Suggested Reading | Binance And Kazakhstan Ink MOU On Crypto, Blockchain Regulation

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