Kazakhstan which is emerging as one of the biggest mining destinations in the world issued a consultation paper for gauging public interest in the proposed amendments and improving the cryptocurrency trading framework.
The Astana Financial Services Authority which is a Kazakh regulator released the policy paper on January 27. The authority indicated that AIFC Digital Asset Trading Facility (AFSA) regulatory framework that was established in 2018 seeks amendments for introducing certain enhancements.
The analysis performed by the authority indicated towards the problems relating to the supervision of crypto exchanges stating it as the contradictions, and inefficient provisions with uncertain definitions. Thus, the new framework seems to introduce risk mitigation measures comprising governance, safeguarding client funds, illicit activity, etc.
Mentioning the DATF framework, the paper recommends three options –
- Keeping intact the existing framework
- Developing a standalone DATG framework
- Treatment of crypto exchanges as MTF ( Multilateral Trading Facility )
Besides, introducing the risk mitigation measures, the paper focuses on addressing the contradictions and lack of clarity in the existing framework. Thus, the final outcome of the paper is believed to create a favorable regime for crypto exchange and encourage innovations.
The paper aims to create a positive impact on the crypto trading industry and create a clear, convenient, detailed, efficient, and balanced AIFC DATF framework. It also plans to focus on consumer protection without hindering the development of crypto exchanges.
Alongside this, Kazakhstan’s Central Bank recommends launching the in–house CBDC in 2023 with expanded functionality and updating the commercial operation until 2025. Reportedly, in October 2022, Binance CEO Changpeng also revealed that Kazakhstan’s CBDC would be integrated into a BNB Chain a blockchain built by the crypto exchange.