Kazakhstan Proposes to Create a Crypto Bank

Story highlights

• Kazakhstan plans to establish a crypto bank for digital assets.

• Peruashev urges legal reforms for cryptocurrency transactions in Kazakhstan.

• 90% of crypto transactions in Kazakhstan occur outside regulations.

Kazakhstan is planning to create a crypto bank to manage digital assets and allow legal cryptocurrency transactions. Mazhilis Deputy Azat Peruashev suggested this idea. He proposed that the National Bank and other financial institutions take part in the project. Further, the prime minister received this demand due to President Kassym-Jomart Tokayev’s orders for cryptocurrency law reform.

Peruashev Calls for Legal Framework for Cryptocurrency in Kazakhstan

Peruashev affirmed that cryptocurrency functions as an essential component within the worldwide financial structure, while numerous residents of Kazakhstan view it as an investment opportunity. Kazakhstan lacks appropriate laws to regulate the legal use of cryptocurrencies within its territory. The government implemented a ban on cryptocurrency trading, because of which the market remains unregulated. The illegal sphere of cryptocurrency transactions dominates Kazakhstan to such an extent that it constitutes 90% of total transactions.

Peruashev maintains that the imposed ban has yielded multiple negative effects. Illegal cryptocurrency exchanges, together with tax evasion and criminal funding, have increased because of the cryptocurrency trading ban. A significant number of people have become victims of frauds and unmonitored digital platforms through which they lost their investments. The lack of government control marks one of many problems that exist when cryptocurrency transfers occur illegally across national borders.

According to Peruashev, a crypto bank would represent an optimal answer to handle outstanding concerns. A regulatory institution focused on cryptocurrency exchange and storage would operate inside a lawful framework to control the crypto market. The integration of these institutions already exists within developed economies because cryptocurrencies function as legal elements that drive their fintech industries. The implementation of a crypto bank would turn Kazakhstan into the leading digital financial force in the regional market.

Peruashev predicts that this project will turn Kazakhstan into a prominent financial technology hub of the region. The regulatory framework would help cut down illegal cryptocurrency operations while raising tax income levels. The official noted that digital finance advances in neighboring countries demand that Kazakhstan to maintain its pace for competitive purposes.

Crypto Bank Could Reshape Kazakhstan’s Financial Future

Deputy Ekaterina Smyshlyaeva also supported the proposal. She pressed the government to make better cryptocurrency law rules. The crypto industry needs development to establish an innovative economy in our nation. According to her recollection, President Tokayev underscored three vital aspects of cryptocurrency management – legalizing transactional use of crypto assets and enhancing their exchange services alongside crypto mining investment and infrastructure attraction.

Smyshlyaeva confirmed Kazakhstan has started its cryptocurrency rules through its “On Cryptocurrencies” law. However, since its adoption, the market has evolved significantly. Now, it is necessary to move to the next phase of regulation. She recommends letting people use legitimate crypto platform services without legal trouble, but requiring strict control of platform operators. In addition, she wanted to grow Kazakhstan’s crypto environment by letting licensed platforms join the financial system plus maintain tight crypto transactions. She urged the government to modify current rules because digital traders need equal protection under the law.

Recently, the Kazakhstan government has started to enforce rules on illegal crypto exchanges. The government closed down 3,500 unauthorized exchanges through its enforcement actions during January. The National Security Committee teamed up with the Ministry of Culture and Information to carry out these blocking actions. Due to federal digital asset law violations, the government also prevented Coinbase from operating.

As Kazakhstan progresses with its digital transformation steps, a crypto bank will greatly affect the country’s financial prospects.