Kazakhstan is preparing to establish a crypto pilot project in the Astana International Finance Centre’s economic zone. This helps exchange platforms operate legally in the Astana International Finance Centre as early as this year.
The country has also made strides in regulating crypto mining and has now taken an additional step to promote the country’s digital asset adoption. This significant shift occurred immediately after Changpeng Zhao, CEO of Binance, visited the nation.
This pilot project will collaborate between exchange platforms and some of the country’s local banks. This announcement was made by the Ministry of Digital Development, Innovations, and Aerospace Industry of the Kazakhstan Republic.
The decision to allow the pilot project was made by a particular working group that devised the guidelines governing the interactions between exchanges and banks.
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Know More About Kazakhstan’s Pilot Project
This move will allow coordination between exchange platforms and Kazakhstan banks of second-tier status. As indicated previously, a special working committee created these standards to which crypto exchanges and institutions would comply.
The relevant working group comprises members from the Ministry of Digital Development, the National Bank, the Financial Monitoring Agency, The Association of Financiers, the Astana International Finance Centre, and market participants from the financial and digital asset sectors.
According to reports, the pilot project would run through the end of 2022. The relationship between the crypto exchange and the second-tier banks will allow the exchanges to trade digital assets or cryptocurrencies.
The newly established Astana Financial Service Authority (AFSA) will issue this licence. It also facilitates a plan to turn Kazakhstan into a regional crypto centre.
The closure guidelines will be posted on the Astana International Financial Centre (AIFC) website.
Facilitate Companies’ Operations Nationwide
Binance, the world’s largest cryptocurrency exchange by trading volume, assisted Kazakhstan in creating and establishing digital asset rules.
According to reports, the nation decided to grow the cryptocurrency business. The Astana Center will transform into an international digital asset hub with the aid of Binance and the Key Ministries.
Nurhat Kushimov, the head of the Astana Financial Service Authority (AFSA), claimed that the committee’s purpose is to establish an environment for sustainable and dependable enterprises and that the AFSA is the sole institution responsible for regulating the operations of fintech companies in Kazakhstan. Before granting a licence to a fintech business, we undertake a comprehensive background investigation and maintain continual oversight.
In May, the Kazakh parliament enacted in first reading revisions to the national tax code to put a tax on crypto mining that would be connected to the price of power used by mining organisations.
