Kazakhstan’s financial authorities are launching a public consultation on preliminary changes to the country’s framework for trading digital assets. The proposals include measures to reduce risks in the crypto market and improvements to the structure of exchange platforms.
Kazakhstan Financial Center Seeks To Modify Its Concept For Trading Digital Assets
The Astana Financial Services Authority, the body that oversees the Astana International Financial Center (AIFC), has published a consultation document detailing proposals aimed at improving Kazakhstan’s regulated ecosystem for cryptocurrency trading.
The document suggests measures to reduce market risks in the government-controlled business environment. The regulatory body has also prepared solutions to improve the current structure of crypto platforms operating in the financial hub of the Central Asian nation.
AIFC residents as well as other interested parties were invited to participate in the consultation, crypto news outlet Forklog reported, citing the advertisement. The managing authority will accept comments from the public until February 25.
The approved proposals will be added to AIFC’s draft Digital Asset Trading Concept amendments that are expected to be published later this year. These include mechanisms to prevent market abuse, limit settlement risks, and disclose information to investors.
The initiative comes after the Nur-Sultan parliament adopted a bill dedicated to regulating the country’s crypto space. Along with other legal acts, the law “On Digital Assets in the Republic of Kazakhstan” introduces rules for the extraction and circulation of cryptocurrencies.
The legislation also provides for the establishment of a licensing regime for cryptominers and exchanges to replace the existing registration system. Kazakhstan became a mining hotspot following China’s crackdown on the industry and has been seeking to regulate the sector and the sale of minted coins.
An influx of miners has been blamed for the country’s growing energy deficit and authorities have been cracking down on unauthorized crypto farms. They have also removed a number of illegal crypto trading platforms, as only AIFC-registered exchanges can provide such services.
Do you think Kazakhstan takes steps to expand its legal framework for digital assets in order to become a regional crypto hub? Tell us in the comment section below.
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