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Kazakhstan to let crypto exchanges open financial institution accounts

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In addition to its swift advances towards regulating crypto mining, Kazakhstan will launch a pilot undertaking for crypto exchanges within the particular financial zone of Astana International Finance Centre. 

The Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan Republic introduced on Thursday a pilot undertaking of cooperation between the crypto exchanges and a few of the native banks.

The working group formulated the rules for that cooperation, consisting of the representatives of the Ministry of Digital Development, the National Bank, the Financial Monitoring Agency, the Association of Financiers, Astana International Finance Centre and the finance and crypto market stakeholders. 

The pilot undertaking shall be functioning till the tip of 2022 and embrace the exchanges which have gained a license from the freshly-formed Astana Financial Service Authority (AFSA). It will make a blueprint for the next improvement of Kazakhstan as a regional crypto hub. Close tips ought to quickly be printed on the AIFC webpage.

Head of AFSA Nurhat Kushimov declared that the mission of his committee is to create an setting for dependable and sustainable firms to function:

“The Astana Financial Service Authority is the only entity responsible for regulating the fintech companies’ activities in Kazakhstan. Before handing out the license to a fintech company, we conduct a deep and thorough background check, and after that maintain its constant supervision.”

Bagdat Musin, the minister of digital improvement, voiced Kazakhstan’s purpose to revenue off crypto exchanges:

“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”.

On May 25, the Kazakh parliament handed within the first studying the amendments to the nationwide tax code to impose a crypto mining tax tied to the electrical energy costs consumed by mining entities.

Related: Bitcoin miners’ resilience to geopolitics: A wholesome signal for the community

On the identical day, the most important crypto change Binance signed a memorandum of understanding with the Ministry of Digital Development and revealed an intention to advise on creating the legislative framework and regulatory coverage for crypto-assets within the republic.