Kazakhstan is the home of one of the largest Bitcoin (BTC), mining operations in the world. A consultation paper was released to gauge public interest in proposed amendments to improve cryptocurrency trading regulations.
The guidelines were developed by the Astana Financial Services Authority, a Kazakh regulator. They were made public in a policy document on January 27. The Astana International Financial Centre has a framework for its Digital Asset Trading Facility, (DATF), that dates back to 2018. The AFSA noted that these changes are intended to improve the framework.
AFSA conducted research and found “contradictions,” ineffective rules, as well as ambiguous definitions. This was among the issues revealed by the continual monitoring of cryptocurrency exchanges. It recommended that risk reduction strategies be implemented on multiple fronts. These included governance, illegal behaviour and settlement.
The report offered three options for reorganizing the DATF Framework: retaining the current structure, creating an independent DATF Framework, or treating crypto exchanges like multilateral trading facilities.
The AFSA thinks that the policy changes will bring about a range of improvements. One such change will be the decrease in risks associated cryptographic operations and the entire sector. Additionally, upgrades will address aspects that are unclear or contradictory in the current framework. As AFSA anticipates, the end result will be a favorable framework for cryptocurrency exchanges and innovation.
The policy paper states that the proposed measures will have positive effects on cryptocurrency trading. It also says that they will help to create a more clear, simple, efficient, detailed, balanced AIFC DATF framework with high standards of consumer protection without affecting the development of crypto exchanges.
The paper concluded by revealing that the review of DATF’s framework was in line with “AFSA’s Strategy for 2022”, which identifies creation of a Digital Assets framework: STO, Crypto exchanges and DASP as one of three primary goals for developing key regulations.
However, Kazakhstan’s central banks recommended that an internal central bank digital currency (CBDC), launch in 2023 with a gradual expansion of functionality and commercialization until 2025. This recommendation is on the opposite side of the one before.
Changpeng Zhao (CZ) Zhao, CEO Binance, announced in October 2022 that Kazakhstan’s CBDC would merge with BNB Chain. BNB Chain is a cryptocurrency exchange that was built by Binance.