Kazakhstan Ponders Over Establishment of Cryptocurrency Financial Institutions
Crypto Banks on the Horizon in Kazakhstan
Get ready for a digital revolution in Kazakhstan! Prime Minister Olzhas Bektenov recently announced plans to establish crypto banks, aiming to create a solid ecosystem for digital assets.
According to Bektenov, these crypto banks will offer essential services such as digital asset exchange, storage, and transaction support, all within a secure and regulated environment. These functions will be deliverable through infrastructure entities, like cryptocurrency exchange providers, platform operators, custodians, brokers, and dealers, which are already operating under the Astana International Financial Centre (AIFC) jurisdiction.
What's more, the government is working on legislative changes to make digital asset circulation more accessible and expand the platforms available for their exchange. The objective is to develop related financial institutions, with crypto banks as key players.
So, what's in it for Kazakhstan? For one, crypto banks are expected to boost the investment appeal of the country, reflecting the maturity of its financial infrastructure in the context of decentralized finance. Their emergence will open up demand for new specialists, particularly in areas such as compliance, blockchain analytics, and anti-money laundering. Furthermore, crypto banks will stimulate IT developments and blockchain technologies, ensuring the growth of liquidity for both fiat and digital assets within the AIFC.
Bektenov also noted that the establishment of crypto banks will contribute to increasing the transparency of digital asset transactions and the compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This move aligns with President Kassym-Jomart Tokayev's push to modernize infrastructure and legitimize digital asset markets.
In the big picture, these efforts aim to shift activity from "gray zone" platforms to AIFC-regulated entities, improving oversight and reducing illicit financial flows. Kazakhstan also positions itself as a hub for decentralized finance (DeFi) by demonstrating a mature financial infrastructure, potentially spurring economic growth by retaining capital within the domestic economy and promoting IT/blockchain job creation.
Sources:1. Kazakhstan Transport and Communications Ministry official speaks on cryptocurrency regulation amid ongoing legislative amendments2. Kazakhstan's financial watchdogs concerned over cryptocurrency regulations3. Kazakhstan's Central Bank Discusses Digital Assets Regulation and Issuance4. Astana Financial Centre Demands Compliance with Financial Disclosure Requirements from Financial Institutions
- The crypto banks in Astana will be required to ensure compliance with financial disclosure requirements, as set by the Astana Financial Centre.
- Prime Minister Bektenov has stated that one of the key functions of these crypto banks will be complying with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
- The emergence of crypto banks in Kazakhstan is expected to stimulate IT developments and blockchain technologies, and boost the demand for specialists in areas like compliance and blockchain analytics.
- The establishment of crypto banks in Kazakhstan is seen as a strategic move to liberalize the finance sector, making business transactions more accessible and bringing digital assets within a regulated environment.
