Kazakhstan Considers Opening Crypto Banks

ASTANA – Kazakhstan is considering the establishment of crypto banks, which can play a key role in the formation of a sustainable ecosystem, Prime Minister Olzhas Bektenov stated in response to a formal inquiry from members of the Mazhilis, a lower house of Parliament, on April 25.
According to the Mazhilis, Bektenov said the basic functions provided by crypto banks such as digital asset exchange, storage, and transaction support will be covered within the emerging ecosystem.
These functions are expected to be delivered through infrastructure entities, including providers of cryptocurrency exchange transactions, digital asset platform operators, custodians, brokers, and dealers, many of which already operate under the jurisdiction of the Astana International Financial Centre (AIFC).
These participants will be able to provide a wide range of digital services in accordance with international practice and within a regulated and secure environment.
The government has drafted legislative amendments aimed at liberalizing the circulation of digital assets and expanding the platforms available for their exchange. An important area is the development of related financial institutions.
In turn, crypto banks would provide comprehensive banking services to new participants in the digital market, contribute to the increase in the transparency of digital asset transactions and compliance with requirements for combating the legalization (laundering) of proceeds from crime, and the financing of terrorism. They will also play a critical role in digital assets projects and stimulate internal IT developments and blockchain technologies.
“Crypto banks will increase the investment attractiveness of the jurisdiction, reflecting the maturity of Kazakhstan’s financial infrastructure in the context of decentralized finance. The emergence of such institutions will create demand for new specialists, particularly in compliance, blockchain analytics, and anti-money laundering, and will also ensure the growth of liquidity of fiat and digital assets within the AIFC,” Bektenov noted.