Crypto exchanges will operate in the AIFC in collaboration with Kazakhstani banks and government organisations as part of the trial.
Kazakhstan is going to conduct a pilot project in the Astana International Financial Centre to establish and operate cryptocurrency exchanges (AIFC).
The AIFC was established in 2018 with the objective of developing Kazakhstan’s non-bank financial sector and becoming a financial hub for Central Asia. According to its website, it currently has 1,046 registered businesses.
The pilot will see cryptocurrency exchanges operating in collaboration with local banks and government entities in the AIFC.
Kazakhstan’s government said on Friday that it was amending current legislation to prohibit the use of banking services to facilitate bitcoin activity.
The modifications will permit such activity, subject to necessary due diligence into the source of money, the nature of the AIFC participants’ operations, and collaboration with relevant financial authorities, among other things.
Kazakhstan gained prominence in the cryptocurrency business last year as a result of several miners relocating operations there in response to China’s crackdown.
However, the relationship between mining businesses and their new home deteriorated later in 2021, when the government clamped down on new arrivals due to acute electricity shortages. Last month, the government’s campaign prompted the closure of 106 mines.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.