Crypto

Kazakhstan will now allow crypto exchanges to hold their bank accounts

Kazakhstan is ready to launch a cryptocurrency pilot project in the Astana International Financial Center economic zone. This will provide exchange platforms to operate legally in the Astana International Financial Center in the same year.

The country has also made progress in regulating crypto mining, but has now gone a step further in driving the adoption of digital assets in the country. This massive move comes just after Binance CEO Changpeng Zhao visited the country.

This pilot project will be a form of cooperation between exchange platforms and some local banks in the country. This news was announced by the Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan.

The decision to approve the pilot project was made by a special working group that has created the rules that will be put into practice as exchanges interact with banks.

More about the Kazakhstan crypto pilot project

This move will primarily facilitate a collaboration between exchange platforms and second-tier banks in Kazakhstan. As mentioned above, there was reportedly a special working group that formulated these guidelines that will be followed by crypto exchanges and banks.

The working group in question includes representatives from the Ministry of Digital Development, the National Bank, the Financial Supervision Agency, the Association of Financiers, the Astana International Financial Center and also stakeholders from the financial and digital asset market.

The pilot project will reportedly be operational until the end of 2022.

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

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

The closing guidelines will be uploaded to the Astana International Financial Center (AIFC) webpage.

Suggested Reading | Crypto Mining: Kazakhstan Collects $1.5 Million in Bitcoin Miner Fees

Creating an environment for reliable and sustainable companies to operate in the country

The world’s largest cryptocurrency exchange Binance had helped Kazakhstan take its initial step in developing and formulating digital asset regulations.

According to reports, the country was deciding to develop the cryptocurrency industry. With the help of Binance and Key Ministries, Astana Hub will become an international hub for digital assets.

The 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, stating:

The Astana Financial Services Authority is the sole entity responsible for regulating the activities of fintech companies in Kazakhstan. Before licensing a fintech company, we conduct a thorough and thorough background check, and then maintain your constant monitoring.

In May, the Kazakh parliament approved in first reading amendments to the national tax code to introduce a tax on crypto mining that mining institutions will link to the price of electricity.

Suggested Reading | Binance and Kazakhstan Sign Memorandum of Understanding on Cryptocurrency and Blockchain Regulation

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