The Astana Financial Services Authority (AFSA), a Kazakh regulator, recently issued a consultation paper to gauge public interest in proposed amendments to improve the cryptocurrency trading framework in the country. As one of the world’s most prominent Bitcoin mining destinations, Kazakhstan is looking to enhance the regulatory framework to create a favorable environment for crypto exchanges while encouraging innovation.
The AFSA pointed out that the current Digital Asset Trading Facility (DATF) regulatory framework, which dates back to 2018, has several contradictions, inadequate provisions, and unclear definitions, making it challenging to supervise crypto exchanges properly. The policy paper recommended introducing risk mitigation measures to improve governance, prevent illicit activity, ensure the safekeeping of clients’ funds, and improve settlement processes.
In terms of restructuring the DATF framework, the paper presented three options – keeping the existing framework, developing a standalone DATF framework, or treating crypto exchanges as a multilateral trading facility. The AFSA believes that the proposed measures will positively impact the crypto trading industry by creating a clear, convenient, efficient, detailed, and balanced regulatory framework that protects consumers while promoting growth.
The review of the DATF framework aligns with the AFSA’s 2022 strategy initiative, which has the development of regulations for digital assets, crypto exchanges, security token offerings, and decentralized autonomous service providers as one of its key objectives.
Meanwhile, the Central Bank of Kazakhstan has recommended the launch of a central bank digital currency (CBDC) in 2023, with a phased expansion of functionality and commercial operation by the end of 2025. This move will further solidify Kazakhstan’s position as a leader in the digital finance space.
In conclusion, Kazakhstan is improving its cryptocurrency trading framework by introducing regulatory enhancements that promote growth and protect consumers. The country’s plans for a central bank digital currency will further establish its position as a leader in the digital finance space. These moves demonstrate Kazakhstan’s commitment to fostering innovation while maintaining a safe and secure cryptocurrency trading environment.