Kazakhstan proposes to increase requirements for crypto companies


Negative events in the cryptocurrency industry, such as the collapse of FTX, have shown the need for increased regulatory requirements for digital assets. This is stated in a press release following the results of the panel session as part of the Astana Finance Days.

During the speech, Zain Umer, Head of Digital Assets Regulation at the Cambridge Center for Alternative Finance, noted the adoption of a universal regulatory framework for the industry.

“We have two fantastic new crypto modes in Dubai and Hong Kong […]. We see developing countries leading the way, and we hope they develop a fair and equitable regulatory regime that allows innovation to flourish and reduces risk,” he stressed.

The participants drew attention to the steps taken by the European Union in the field of creating a regulatory framework for the industry. On April 20, the European Parliament adopted a regulation MiCAwhich was rated as increasing confidence in the industry.

“Founders and owners of crypto companies must demonstrate good market behavior and adhere to a high-tech regulatory standard,” concluded Sopnendu Mohanty, CFO at the Singapore Financial Regulatory Authority.

As part of another panel session, participants in a pilot project on interaction between second-tier Kazakh banks and crypto exchanges registered in AIFCdiscussed its interim results.

According to the general manager of Binance Kazakhstan, Zhaslan Madiev, the country is the only one in the post-Soviet space “that has gone far both in regulation and in market development.”

“Given all these factors – legislative, regulated and institutional, it is clear that Kazakhstan is the most prepared for the development of players and the digital industry as a whole,” he added.

Recall that in January 2023, President of Kazakhstan Kassym-Jomart Tokayev signed the law “On Digital Assets”. It obliges miners to license their activities.

Cryptocurrency mining in the country is allowed only for participants of the Astana International Financial Center and non-resident legal entities, subject to an agreement with licensed data centers.


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