Kazakhstan Legalizes Crypto Exchange Operations through New Licensing System – Coincu

Kazakhstan’s Central Bank, led by Yerlan Ashykbekov, announced the legalization of cryptocurrency-for-fiat exchange operations, requiring licenses starting May 23. The immediate regulatory change marks a significant shift in Kazakhstan’s digital asset landscape, potentially stabilizing the market.

Kazakhstan’s Central Bank has introduced new licensing regulations aimed at legalizing cryptocurrency exchanges. Previously, only exchanges under the Astana International Financial Center (AIFC) operated legally. Yerlan Ashykbekov, head of the payment system department, revealed that the central bank will now approve a list of tradable cryptocurrencies.

“Kazakhstan is introducing a new category of licensed crypto exchange providers authorized to carry out crypto-to-fiat operations.” — Yerlan Ashykbekov, Head of the Payment Systems Department, National Bank of Kazakhstan

With the introduction of these regulations, trading platforms must establish risk management systems and asset protection mechanisms. This development seeks to move Kazakhstan’s significant crypto market, estimated at $4.1 billion, from the shadow economy into a supervised framework.

Key reactions from involved officials illustrate the regulatory stance. Yerlan Ashykbekov emphasized the central bank’s commitment to maintaining integrity and security within the growing cryptocurrency sector. Deputy Governor Berik Sholpankulov confirmed the legislative amendments, aligning policies with President Kassym-Jomart Tokayev’s vision for regulated digital asset use.

Regulatory Overhaul Aims to Incorporate $4.1B Shadow Market

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Kazakhstan’s move to integrate a national regulatory system with the Astana International Financial Center framework is akin to bridging separate financial regimes, an effort rarely seen in the cryptocurrency regulatory landscape.

While Kazakhstan’s regulatory environment evolves, high transaction volumes outside government oversight underscore the necessity for such frameworks. Historical actions, such as shutting down 36 illegal exchanges in 2024, emphasize persistent efforts to secure the market.

Experts speculate that the digital asset regulatory sandbox could foster innovation, encouraging the development and testing of digital financial instruments. The new framework is expected to enhance regulatory oversight, ensuring informed and secure market growth through clear guidelines and approved trading lists.