Kazakhstan is advancing toward the legislative legalization and regulation of cryptocurrency activities, with plans to introduce licensed crypto exchange platforms supervised by the National Bank.
Key Developments
- New Regulatory Framework: A new category of participants — cryptocurrency exchange service providers — will be formally integrated into Kazakhstan’s legal system. These providers will operate under licenses issued by the National Bank.
- Functions: Licensed providers will facilitate exchanges between cryptocurrencies and fiat currencies. The National Bank will curate the list of permissible cryptocurrencies for trading.
- Dual Supervision: Crypto exchanges within the Astana International Financial Centre (AIFC) will follow separate regulations, while coordination between AIFC exchanges and licensed providers ensures a cohesive digital asset infrastructure.
Objectives of the Legislation
- Consumer Protection: Mitigate systemic risks and safeguard investors.
- Market Expansion: Promote regulated circulation of unsecured digital assets.
- Legal Clarity: Establish transparent operational guidelines for digital financial asset platforms.
Legislative Amendments
The National Bank is drafting amendments to solidify the legal foundation for digital asset turnover. Earlier proposals included creating a state digital reserve for cryptocurrencies under the National Bank’s management.
Challenges Highlighted
- Illegal Activity: Over 86% of Kazakhstan’s 2023 cryptocurrency turnover (~$3.5 billion) occurred via unlicensed platforms.
- Banking Risks: Some second-tier banks reportedly serviced crypto transactions outside legal frameworks, with 4.2 billion tenge processed through 10 banks.
FAQ Section
1. How will licensed crypto exchanges differ from unregulated platforms?
Licensed exchanges will operate under National Bank supervision, ensuring compliance with security protocols and consumer protection laws. Unregulated platforms lack legal accountability, increasing risks for users.
2. Which cryptocurrencies can be traded on licensed exchanges?
The National Bank will publish an approved list. Expect mainstream cryptocurrencies like Bitcoin and Ethereum, subject to regulatory vetting.
3. What are the penalties for using unlicensed crypto services?
While specifics await official guidelines, penalties may include fines or account freezes for individuals and stricter sanctions for financial institutions involved in illegal transactions.
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Future Outlook
Kazakhstan’s proactive stance positions it as a regional leader in cryptocurrency regulation, balancing innovation with risk management. The upcoming laws aim to curb illicit activities while fostering a transparent digital economy.
Keywords: cryptocurrency regulation, licensed crypto exchanges, Kazakhstan National Bank, digital assets, Astana International Financial Centre, consumer protection, blockchain legislation.
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