Kazakhstan will allow crypto exchanges to open bank accounts

In addition to its rapid strides toward crypto mining regulation, Kazakhstan will launch a pilot project for crypto exchanges in the Astana International Financial Center special economic zone.

The Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan announced on Thursday a pilot project of cooperation between cryptocurrency exchanges and some of the local banks.

The working group formulated the guidelines for such cooperation, composed of representatives from the Ministry of Digital Development, the National Bank, the Financial Supervision Agency, the Association of Financiers, the Astana International Financial Center and financial and crypto market stakeholders. .

The pilot project will run until the end of 2022 and will include exchanges that have obtained a license from the newly formed Astana Financial Services Authority (AFSA). It will make a model for the further development of Kazakhstan as a regional crypto center. The upcoming guidelines should be posted on the AIFC website soon.

AFSA head Nurhat Kushimov stated that his committee’s mission is to create an environment for reliable and sustainable businesses to operate:

“Astana Financial Services Authority is the only entity responsible for regulating the activities of fintech companies in Kazakhstan. Before we license a fintech company, we conduct a thorough and thorough background check, and then maintain constant monitoring.”

Bagdat Musin, the minister of digital development, expressed Kazakhstan’s goal of profiting from cryptocurrency exchanges:

“It is necessary to create a complete ecosystem, so that digital assets, which have been mined with the electric power of Kazakhstan, are traded on local exchanges to the maximum, and the profits stay in the country.”

On May 25, the Kazakh parliament approved in first reading amendments to the national tax code to impose a crypto mining tax linked to the prices of electricity consumed by mining entities.

Related: Bitcoin Miners’ Resilience to Geopolitics: A Healthy Sign for the Network

On the same day, Binance, the largest crypto exchange, signed a memorandum of understanding with the Ministry of Digital Development and revealed the intention to advise on the development of the legislative framework and regulatory policy for crypto assets in the republic.