Kazakhstan pilots bank accounts for crypto exchanges

Kazakhstan has launched a pilot allowing cryptocurrency exchanges to open bank accounts in the special economic zone of Astana International Finance Centre.

The country wants cryptocurrency platforms to be more accountable, but it does not want to impinge on their progress.

The Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan Republic announced on Thursday that the pilot project has started, and that crypto exchanges and local banks may now collaborate.

This initial stage of collaboration will be carried through the end of 2022 at which point it will be decided whether Kazakhstan wants to expand it.

Much of the financial regulation in the special economic zone will be supervised by the Astana Financial Service Authority (AFSA), a newly established regulatory body.

All of this reflects on Kazakhstan’s broader ambitions to ensure that digital currencies are part of its economic future.

“It is necessary to create a complete ecosystem, so the digital assets, that have been mined using Kazakhstan’s electric energy, would be traded at the local exchanges to the maximum extent and the profit would stay in the country”, said Bagdat Musin, the minister of digital development.

Kazakhstan became a popular cryptocurrency destination after China announced that it is suspending all mining operations in the country.

Kazakhstan welcomed fleeing cryptocurrency miners who soon depleted its grid capacity. In response, Kazakhstan began introducing numerous tweaks to the way cryptocurrency companies may operate in the country and what taxes and regulation they need to meet.

The focus was moved away from mining and more towards creating a sustainable long-term regulatory framework for these companies to use as they become a part of the economic future of the country.

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Updated: 06/17/2022 — 09:00