Kazakhstan Develops New Scheme To Link Crypto Exchanges With Banks

Source: Adobe Stock / Pavel Parmenov

As countries around the world step up their efforts to attract players in the crypto industry, authorities in Kazakhstan have launched a pilot program to encourage some local banks to partner with licensed crypto exchanges.

In a statement, the country’s government said that exchanges registered with the Astana International Financial Center (AIFC), a financial center based in Nur-Sultan, the capital of Kazakhstan, are eligible to open accounts in a number of local banks.

Speak Astana Financial Services Authority (AFSA), there are a number of listed companies with “active” licenses, which operate “an exchange”, “a clearing house”, “a digital asset trading system” and/or “provide/arrange the guard”. “These included BitfinexComment Securities Ltd., Up bit Eurasia Ltd., Biteeu Eurasia Ltd., ATAIX Eurasia Ltd., Xignal&MT Ltd.and Eurasia Blockchain Fintech Group Limited. The licenses of several other such companies have been “suspended by the participant”.

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As part of its plan to attract crypto-oriented businesses, a special working group has been set up to work out the rules for cooperation between crypto exchanges and Kazakh banks.

The group includes representatives from the country Ministry of Digital Development, Innovation and Aerospace Industrythe center National Bank of Kazakhstanthe Financial Markets Regulation and Development Agencythe Financial Monitoring Agency, Association of Financiers of KazakhstanACEC, as well as representatives from the banking and digital asset industries, according to the statement.

Bagdat Musin, Kazakh Minister of Digital Development, Innovation and Aerospace Industry, noted that the crypto industry includes not only mining, but also crypto-assets, digital currency, wallets and blockchain technologies, stating:

“It’s an industry that, like other industries, can work for the good of the country and benefit our economy. We need to turn the cryptocurrency exchange into a revenue stream and move to the next level of fintech development.

The government representative further argued that,

“There is a need to create a full-fledged ecosystem, so that digital assets generated by Kazakhstan’s electricity are traded on local cryptocurrencies and the revenue stays in the country. At the same time, we have an appropriate platform, like the AIFC.

Earlier this month, the National Bank of Kazakhstan said it was “interested in” the “innovation opportunities” that crypto-assets and decentralized finance (DeFi) can “offer” to the government.

Meanwhile, last May, the AIFC announced that it had been visited by the CEO of a major crypto exchange BinanceChangpeng Zhao, who “became familiar with [the AIFC] activities, among others.

“In October 2021, Binance registered as an AIFC participant and is currently undergoing the authorization process with the [AFSA] to obtain a license to trade digital assets or a crypto exchange,” the announcement said.

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Learn more:
– The Central Bank of Kazakhstan explores “opportunities in crypto and DeFi “innovation”
– Kazakhstan caps crypto purchases by retail investors on national exchanges

– Kazakhstan considering higher tax for Bitcoin miners
– Bitcoin miners could go nuclear in Kazakhstan as government plans new power plant

– South Korean banks earned $31 million in crypto transaction fees last year
– Brazil’s largest neobank invests in Bitcoin and will allow customers to buy BTC, Ethereum

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Kazakhstan Develops New Scheme To Link Crypto Exchanges With Banks


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