Kazakhstan approved regulations that govern the interactions between authorized coin trading platforms and traditional financial institutions. The new rules will allow registered cryptocurrency exchanges to have bank accounts in the country.

A working group has been formed that includes representatives of the Ministry of Digital Development, the Central Bank, financial regulators, and members of the financial and digital asset sectors to approve regulations allowing crypto exchanges registered at the Astana International Financial Center.

A regulatory framework will facilitate Kazakhstan’s potential as a regional crypto hub, as part of the initiative. Following its launch in 2022, crypto trading platforms licensed by AIFC Financial Services Authority (AFSA) will take part in the pilot project.

Last May, China cracked down on cryptocurrency mining in Kazakhstan. By contrast, according to Digital Development Minister Bagdad Musin, the crypto industry is not only about mining but also includes crypto exchanges, bitcoin wallets, and other blockchain platforms. The high-ranking government official elaborated:

It is like other industries, which can and should work for the benefit of our economy. We must make money on crypto exchange — this is the next level of development of financial technologies.

Insisted that the Central Asian nation must create a full-fledged ecosystem so that the digital assets extracted from Kazakhstan’s electricity can be traded on local exchanges and that their income stays within the country.

Digital Ministry official stated that the pilot project will allow the regulation of digital currencies, providing better protection for both investors. The authorities in Nur-Sultan will modify the country’s laws and the AIFC Act if the project is successful.

Nurkhat Kushimov, head of the AIFC Financial Services Regulatory Committee, pointed out that the AIFC financial services committee is the only oversight body in Kazakhstan responsible for fintech companies. The license application process is thoroughly supervised and checked by all entities, he stated. “Our goal is to create an environment in which only trustworthy and stable companies that enjoy the trust of customers would operate,” the official stated.