Kazakhstan, one of the world’s largest Bitcoin (BTC) mining destinations, issued a consultation paper to gauge public interest in reforms intended to improve the cryptocurrency business framework.
The policy paper, released on January 27, was set by Kazakh regulator Astana Financial Services Authority (AFSA). AFSA pointed out that the Astana International Financial Center’s Digital Asset Trading Facility (DATF) regulatory framework was introduced in 2018 and that the amendments seek to introduce certain reforms.
AFSA’s analysis highlighted problems with the ongoing regulation of crypto exchanges, highlighting “contradictions in the regime, ineffective provisions and uncertain definitions”. It recommends introducing risk prevention measures across multiple fronts, including governance, illegal activity, protecting customer funds and resolution.
Regarding the restructuring of the DATF framework, the paper recommended three options – maintaining the existing framework form, developing an independent DATF framework, and treating crypto exchanges as a multilateral trading institution.
AFSA believes that the policy recommendations will bring a number of improvements, including reducing the risks associated with crypto operations and the industry. In addition, the amendments resolve contradictions and unclear provisions in the existing framework. The end result, expected by AFSA, is to create a favorable system for crypto exchanges while encouraging innovation.
According to the policy paper, the proposed measures will have a positive impact on the crypto business industry.
“This will collectively help create a more transparent, convenient, efficient, detailed and balanced AIFC DATF framework with high standards for consumer protection, without hindering the development of crypto exchanges.”
In conclusion, the paper concludes that the review of the DATF framework is in line with the “2022 AFSA Strategy” initiative, and the development of the “Digital Assets Framework: Crypto exchanges, STO and DASP” is one of the three key regulatory development objectives. .
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At the other extreme, the Central Bank of Kazakhstan has recommended launching a domestic central bank digital currency (CBCC) in 2023, with operational expansion and commercialization by the end of 2025.
In the year In October 2022, Binance CEO Changpeng “CZ” Zhao revealed that Kazakhstan’s CBCC will merge with BNB Chain, the blockchain developed by the crypto exchange.