Kazakhstan Allows Crypto Firms To Partner With Local Banks

In recent months, Kazakhstan has taken several steps to regulate the crypto industry. Now, it has created a pilot test for exchange firms in the AIFC’s special economic zone. Meanwhile, this project would only run throughout 2022.

Crypto Exchanges To Open Accounts With Local Banks

On Thursday, Kazakhstan’s Ministry of Digital Development, Innovations and Aerospace Industry made an announcement. The association noted that it would begin a pilot project. In this project, crypto exchanges would be allowed to cooperate with some local banks.

Meanwhile, a group has formulated guidelines for the basis of the cooperation. The group comprised representatives from the National Bank, and the Association of Financiers.

Other representatives are Astana International Finance Center (AIFC), the Ministry of Digital Development, and stakeholders in the crypto market.

Furthermore, the project would function till the year ends. However, only exchanges with a permit from the Astana Financial Service Authority (AFSA) would participate. 

Also, the AFSA will create a blueprint for Kazakhstan to develop into a crypto hub. Furthermore, Nurhat Kushimov, AFSA’s leader, threw more light on the committee’s mission. 

He noted that its mission aims at creating a sustainable and reliable environment for companies. Kushimov stated that:

“AFSA is responsible for the regulation of the fintech firms in the country. Additionally, we are in charge of handing license to firms to operate. Before we do so, we carry out a thorough check. Afterward, we keep an eye on the activities of the company.”

Kazakhstan To Profit From Crypto Firms

As stated by Bagdat Musin, Kazakhstan’s Minister of digital development, the country wants to make money from crypto platforms. 

He stated that;

“Our plan is to ensure a comprehensive ecosystem is in place. This ecosystem will ensure that everything made in the country remains in the country. The same goes for the digital assets that were mined with the country’s power.”

According to the Minister, crypto miners would exchange these digital assets at local exchange firms. As a result, the profit made would remain in Kazakhstan.”

On the 25th of May, the parliament of Kazakhstan passed a legislative amendment. This changed the nation’s tax code to enforce taxation on crypto mining firms. 

Hence, crypto miners must pay levies based on the amount of power consumed. The same day, Binance entered into a memorandum with the Kazakhstani government. 

The crypto firm signed a MOU with the country’s ministry of digital development. The partnership would allow Binance to advise Kazakhstan on a regulatory framework for digital assets.