Kazakhstan is taking steps to tighten oversight of the crypto industry by introducing licensing for exchanges converting cryptocurrency to fiat.
New Licensing Rules
Kazakhstan's central bank will lead the introduction of a new class of market participants—crypto exchange service providers—who will be required to obtain a license to operate. Licensed entities will be authorized to conduct crypto-to-fiat exchange operations, with the central bank determining which digital currencies may be traded.
Government Response
These new regulations were announced by Yerlan Ashykbekov, head of the payment systems department at the National Bank of Kazakhstan, during a recent press briefing. President Kassym-Jomart Tokayev has repeatedly emphasized the importance of building a legal framework for the crypto sector, urging officials to take actions to legitimize crypto activities in the country.
Kazakhstan's Positioning as a Crypto Hub
Kazakhstan aims to become the leading cryptocurrency hub in Central Asia by easing regulatory constraints and promoting blockchain innovation. This regulatory overhaul is crucial for legitimizing the country's crypto economy and integrating platforms based in the Astana International Financial Centre with the new network of licensed operators.
The introduction of licensing for crypto exchanges in Kazakhstan highlights the country's commitment to transparency and legitimacy in the crypto sector, which may serve as a foundation for economic growth in this area.
