Kazakhstan is preparing to establish a prototype cryptocurrency operation in the Astana International Finance Centre economic zone. This will make it possible for exchange platforms to operate legally in the Astana International Finance Centre as early as this year.
The government has also made strides in regulating crypto mining and has now taken an additional step to promote digital asset use in the nation. This big shift occurred immediately after Changpeng Zhao, CEO of Binance, visited the nation.
This pilot initiative will be a type of collaboration between exchange platforms and some of the country’s local banks. This announcement was made by the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan.
The decision to allow the pilot project was made by a special working group that devised the guidelines that would govern the interactions between exchanges and banks.
More About Kazakhstan’s Crypto Pilot Project
This action will largely allow coordination between exchange platforms and Kazakhstan banks of second-tier status. As indicated before, a special working committee apparently created these standards that crypto exchanges and institutions would comply with.
The relevant working group consists of members from the Ministry of Digital Development, the National Bank, the Financial Monitoring Agency, The Association of Financiers, the Astana International Finance Centre, and market participants from the financial and digital asset sectors.
According to reports, the trial project would run through the end of 2022. In addition, it is said that the relationship between the crypto exchange and the second-tier banks would provide the exchanges with a licence to trade digital assets or cryptocurrencies.
The newly established Astana Financial Service Authority will issue this licence (AFSA). It will also aid in the formulation of a strategy to further establish Kazakhstan as a regional crypto centre. The closure instructions will be posted on the website of the Astana International Financial Centre (AIFC).