Kazakhstan Wants Crypto Exchanges And Banks To Work Together
Kazakhstan has given authoritative approval to test a new program that enables a close working relationship between certain financial institutions and licensed crypto exchanges. The two groups will work under the Astana International Financial Center (AIFC) supervision.
Kazakhstan Banks Can Open Accounts For Local VASPs
Part of the official statement confirms that 2nd-tier local banks now have the authorization to open accounts for VASPs. They can also enable them to access these banks’ other financial services. However, the banks must only offer these financial services to licensed VASPs.
Kazakhstan’s financial services regulatory commission (FSRC) is the only regulator which provides this license. Representatives from various government agencies gathered together to develop the operational guidelines for this pilot program.
Nurhat Kushimov, head of FSRC, said, “the FSRC performs detailed check into any company seeking an operating license. Also, the agency supervises them to ensure that they aren’t operating outside their given mandate.”
Some of those agencies include the association of Kazakhstan financiers, the Financial Monitoring Agency, Astana International Financial Center (AIFC), and the Digital Development and Innovation Ministry.
The pilot program is scheduled to run till the end of the year. The result of this pilot will assist the government in deciding whether to change its current crypto policies completely. Also, it will enable the authorities to modify those policies.
The plan to enable banking service features for VASPs has been in development since last year. Kazakhstan authorities planned to test this feature for 12 months. Thus, they can assess the benefits of cryptos and their risks.
It is worthy of note that this announcement follows a recent visit by Binance Global CEO (Changpeng Zhao) to the central Asia nation. Updates regarding this pilot initiative will be available on the government’s site. The final decision of the authorities will also be on the same site.
Exploring The Blockchain Industry Besides Mining
The partnership between crypto exchanges and banks is one way the nation seeks to learn more about crypto and blockchain. However, it has no plan to learn about crypto mining.
According to Bagdat Musin, “there is more to crypto and blockchain space than mining. There are virtual currencies, wallets, and other blockchain technologies. Like other industries, the crypto sector can be highly beneficial for our economy.”
Musin is Kazakhstan’s minister for digital development. The minister further noted that the country provides support for crypto mining operations. Hence, the next logical step is earning revenue from digital asset trades. He added that this move would enable the country to attain the next step in developing its financial technology sector.
Musin further said developing other aspects of crypto shouldn’t be a problem. “The AIFC center is already a platform we can build on,” he added. Last month, Kazak’s legislators passed the first reading on the national tax code amendment bill. The bill seeks to incorporate tax from mining companies into electricity prices.
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