Kazakhstan, one of the world’s largest Bitcoin (BTC) mining destinations, has issued a consultation paper to gauge public interest in proposed amendments to improve the cryptocurrency trading framework.
Politics paper, published on January 27, was established by the Astana Financial Services Authority (AFSA), a Kazakhstani regulator. The AFSA noted that the regulatory framework of the Astana International Financial Center’s Digital Assets Trading Facility (DATF) dates back to 2018 and that the amendments seek to introduce certain improvements.
AFSA’s analysis highlighted issues related to the ongoing supervision of cryptocurrency exchanges and revealed “inconsistencies, inefficient provisions, and uncertain definitions within the regime.” It recommended introducing risk mitigation measures on several fronts, including governance, illicit activity, custody of client funds, and settlement.
Regarding the restructuring of the DATF framework, the paper recommended three options: retain the form of the existing framework, develop a standalone DATF framework, and treat crypto exchanges as a multilateral trading facility.
The AFSA believes that the policy recommendations will lead to various improvements, including the mitigation of risks related to crypto operations and the industry in general. In addition, the improvements will address inconsistencies and unclear provisions in the existing framework. The end result, expected by AFSA, is to create a favorable regime for cryptocurrency exchanges while encouraging innovation.
According to the policy document, the proposed measures will have a positive impact on the cryptocurrency trading industry:
“This will collectively help create a clearer, more convenient, efficient, detailed and balanced AIFC DATF framework with high standards for consumer protection, without hindering the development of crypto exchanges.”
On a final note, the document revealed that the revision of the DATF framework aligns with the “AFSA Strategy to 2022” initiative, where the development of the “Digital Asset Framework: Crypto Exchanges, STOs and DASPs” is one of the three objectives. regulatory development key. .
Related: Kazakhstan Set to Legalize Crypto as Russians Flock to Country
At the other end of the spectrum, the central bank of Kazakhstan has recommended launching a central bank internal digital currency (CBDC) in 2023, with a gradual expansion of functionality and introduction into commercial operations until the end of 2025.
In October 2022, Binance CEO Changpeng “CZ” Zhao revealed that the Kazakhstan CBDC would integrate with BNB Chain, a blockchain built by the cryptocurrency exchange.
