Pilot project for crypto exchanges launched in AIFC

Kazakhstan can become a regional crypto hub. The AIFC based pilot project between banks and crypto-exchanges is being implemented in the country. Analytics are sure it will allow organizing the trading of digital assets in a regulated field. This means protecting the rights of retail and professional investors.  The project will last until the end of the year.  In case of successful implementation, appropriate amendments will be made to the national legislation and acts of the AIFC.

“This project aims to ensure the exchange of fiat money for crypto-assets in a regulated environment, while the AIFC Financial Services Authority AFSA will act as the regulator of crypto exchanges.  The National Bank continues to act as the regulator of banks.  As part of the pilot project, a limit of US$1,000 will initially be set for retail investors.  This is intended to limit them from the existing risk in terms of capital loss. Next year, we hope that this will be proceeded not as part of a pilot project, but within the usual regulatory conditions,” shared Yagub Zamanov, the Director of Fintech deparment at the AFSA.

According to experts, converting cryptocurrencies into fiat dashes - cash through the country's banks - will prevent illegal operations, including money laundering.  In addition, they will ensure the transparency of the activities of crypto exchanges.  Several important steps are needed to be completed to participate in the project.

“Regulation is as follows - a crypto exchange that plans to take part in a pilot project must obtain a license from the AIFC, a license from the Financial Services Authority.  Accordingly, after that it applies to the working group, which consists of the AIFC committee, the Agency for Regulation and Development of Financial Market, the National Bank, the Association of Financiers and the Agency for Financial Monitoring.  If the application of the crypto-exchange is approved, then it gets the right to participate in a pilot project with the bank with which it has agreed to cooperate.  After that, nothing stops the crypto-exchange from starting with real clients, it can be both residents and non-residents of of Kazakhstan,” stated Yagub Zamanov.

According to the AIFC Financial Services Authority, the project will serve as a big impetus for further development of the crypto industry and increase the investment attractiveness of Kazakhstan.  The country can become one of the favorable countries for doing crypto business and conducting transactions with virtual currencies.


Translation and editing by Saule Mukhamejanova