Kazakhstan, home to one of the world's largest Bitcoin (BTC) mining operations, has released a consultation paper in an effort to gauge the level of interest shown by the general public in proposed amendments that would improve the regulatory framework for cryptocurrency trading.
The Astana Financial Services Authority (AFSA), a Kazakh regulator, developed the guidelines outlined in the policy document that was made public on January 27. The Astana International Financial Center has a regulatory framework for its Digital Asset Trading Service (DATF). ) dating back to 2018, and AFSA noted that the changes are aimed at making some updates to the framework.
The AFSA investigation revealed โcontradictions, ineffective rules, and ambiguous definitions within the regime,โ which were among the issues that came to light as a result of continued monitoring of cryptocurrency exchanges. He suggested implementing risk reduction strategies on several fronts, including governance, illegal behavior, security of client assets, and settlement.
Regarding the reorganization of the DATF framework, the report suggested three different options: keep the framework in its current form, build a standalone DATF framework, and treat crypto exchanges as a multilateral trading facility.
The AFSA is of the opinion that the policy proposals will result in a number of changes, one of which will be the reduction of risks associated with crypto operations and the sector in general. In addition, updates will and will address aspects of the current framework that are contradictory and inaccurate. The end result, as AFSA anticipates, will be the establishment of a favorable framework for cryptocurrency exchanges while promoting innovation.
The policy document indicates that the proposed measures will have a favorable effect on the cryptocurrency trading industry, stating that "this will collectively help create a clearer, more convenient, efficient, detailed and balanced AIFC DATF framework with high standards for the protection of the consumer, without hindering the development of crypto exchanges."
On a final note, the document revealed that the revision of the DATF framework is in line with the initiative known as โAFSA Strategy to 2022โ, which identifies the creation of a โdigital asset framework: crypto exchanges, STOs and DASPsโ as one of three main objectives for the development of key regulations.
On the other hand, the central bank of Kazakhstan recommended launching a central bank internal digital currency (CBDC) in 2023, with a gradual expansion of functionality and introduction into commercial operation until the end of 2025. This recommendation is at the opposite extreme. of the spectrum of the previous one.
Binance CEO Changpeng โCZโ Zhao announced in October 2022 that the Kazakhstan CBDC will merge with BNB Chain, a blockchain built by the cryptocurrency exchange.
