Kazakhstan Contemplates Establishing Cryptocurrency Banking Institutions
Hey there! Kazakhstan's government is pondering over setting up crypto banks, aiming to create a robust digital asset ecosystem. Prime Minister Olzhas Bektenov addressed this in a meeting with the Mazhilis, Parliament's lower house, on April 25.
Check out this snazzy photo from Kazakhstan Today!
According to the Mazhilis, crypto banks will perform key functions like digital asset exchange, storage, and transaction support within this ecosystem. These tasks will be outsourced to various infrastructure providers, such as cryptocurrency exchange transaction providers, digital asset platform operators, custodians, brokers, and dealers. With a good chunk of these entities already operating under the Astana International Financial Centre (AIFC), they can now offer a broader range of digital services, adhering to international standards.
The government is working on legislative amendments that aim to boost digital asset circulation and expand exchange platforms. These reforms prioritize the development of related financial institutions, such as crypto banks.
Crypto banks will act as one-stop shops for newcomers in the digital market, boosting transparency in transactions and ensuring compliance with anti-money laundering regulations. They'll also contribute significantly to digital asset projects, fostering growth in IT development and blockchain technology.
As Bektenov pointed out, crypto banks are poised to enhance Kazakhstan's jurisdiction's investment allure, signaling the country's advanced financial infrastructure in the realm of decentralized finance. This move will create job opportunities, particularly in areas like compliance, blockchain analysis, and anti-money laundering, while increasing liquidity for both fiat and digital assets within the AIFC.
Crypto banks will play a crucial role in establishing Kazakhstan as a hub for digital asset trading and furthering the country's commitment to progressive digital finance initiatives, including exploring a stablecoin settlement system for its national stock exchange and launching the Digital Tenge Central Bank Digital Currency (CBDC) in November 2023. Stay tuned for more updates on this exciting development! 🌟
- The crypto banks, as mentioned by Prime Minister Olzhas Bektenov, will be established in Kazakhstan to foster a digital asset ecosystem, following his address to the Mazhilis on April 25.
- aside from performing key functions like digital asset exchange and transaction support, these banks will offer a broader range of digital services, operating under the Astana International Financial Centre (AIFC), in compliance with international standards.
- In line with the government's efforts to boost digital asset circulation and expand exchange platforms, crypto banks will act as one-stop shops for newcomers in the digital market, ensuring compliance with anti-money laundering regulations and boosting transparency in transactions.
- By establishing crypto banks, Kazakhstan aims to enhance its jurisdiction's investment allure, contributing significantly to digital asset projects, fostering growth in IT development and blockchain technology, while creating job opportunities and increasing liquidity for both fiat and digital assets within the AIFC.
