According to the Deputy Governor of the National Bank of Kazakhstan, cited by Kazinform News Agency, the initiative falls in line with the President’s directive, with the financial institution and government agencies jointly developing a suite of legislative amendments specifically for creating a legal framework for digital asset turnover.
The amendments are set to be comprised of two blocks, including one aimed at the rollout of digital financial assets with the determination of legal status and the second focused on the launch of regulation of the circulation of unsecured cryptocurrencies through licensing of crypto exchange service providers. Additionally, the National Bank of Kazakhstan plans to introduce the Digital Asset Regulatory Sandbox, aimed at allowing market participants to test various services and technologies.
Prior to this announcement, Kazakhstan had been working on overseeing cryptocurrency exchanges, centring on mitigating illegal activity while also facilitating a secure trading landscape. The country also imposes a comprehensive framework that puts licensing, AML compliance, and secure storage at the forefront. The strategy is handled by the Astana Financial Services Authority (AFSA), which enforces customer verification and secure storage protocols.
Besides taking regulatory measures, the government also rolled out educational initiatives to scale public awareness regarding the opportunities and risks associated with cryptocurrencies. With these campaigns, regulators intended to facilitate an informed and engaged population that could effectively take part in the digital economy.
In 2024, the Kazakh government explained the tax implications for gains coming from crypto investments, ensuring that they were consistently treated with other financial instruments. Through this, clarity in tax regulation could offer certainty for investors while also improving the country’s appeal as a crypto-friendly jurisdiction.
At a global level, Kazakhstan’s approach to crypto regulation falls in line with worldwide standards and best practices. The region is an active participant in international forums and partners with other regulatory bodies to create a unified approach to digital currency regulation.
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