Recognizing a growing demand for coin trading services, the head of the monetary authority in Kazakhstan is now convinced that the country needs its own cryptocurrency exchange.
In the absence of a national marketplace for digital assets, citizens are often turning to unregulated foreign crypto platforms, the governor told lawmakers, urging for a balanced approach to regulation.
Central bank governor lobbies for national crypto exchange in Kazakhstan
In the context of a growing demand for retail transactions for the purchase and sale of cryptocurrencies, there is a need to create a legal and transparent channel for carrying out such transactions within the national jurisdiction, Chairman of the National Bank of Kazakhstan (NBK) Timur Suleimenov has been quoted as stating by local media.
The establishment of a national crypto exchange will help bring crypto transactions out of the shadow market and ensure their transparency while improving consumer protection and strengthening control over the circulation of digital assets, the central bank executive elaborated, addressing members of the Majilis, the lower house of Kazakhstan’s parliament.
Suleimenov emphasized that a platform like this would operate in a controlled environment, facilitating crypto transactions within the country’s legal framework and in accordance with specific requirements for such activities.
“The expansion of cryptocurrency turnover requires a balanced approach that takes into account both economic opportunities and the risks inherent to the crypto asset market,” the banker also said, according to a report by the economic news outlet Bizmedia.
Among the risks, the NBK official listed high price volatility and cyber threats that can result in loss of access to funds. Echoing concerns expressed by counterparts, he added the potential use of digital coins for illegal purposes, including money laundering. A national crypto exchange will reduce these risks for those with limited financial and digital literacy, he insisted.
Ban on crypto payments to remain in place, NBK to issue new stablecoin
The use of cryptocurrencies as a means of payment is currently prohibited in Kazakhstan and the head of its monetary authority indicated the ban will remain in place. However, the regulator wants the future state-run exchange integrated with digital asset service providers registered with the Astana International Financial Center (AIFC).
The integration, Timur Suleimenov explained, should create a unified ecosystem for cryptocurrency circulation. The financial hub based in Kazakhstan’s capital city allows crypto companies to obtain official registration and operate legally under its jurisdiction.
“This model will provide access to a wide range of related services, including storage, exchange, trade and operations with digital assets in a legal and secure environment,” the governor detailed.
Suleimenov also revealed that the central bank is currently working to issue a new digital asset using its Digital Tenge as a collateral. This will be a stablecoin called “Crypto-DT” that will be used as a settlement instrument for transactions with digital assets and a store of value during periods of market instability.
The NBK is also preparing a special regulatory regime for testing new crypto-related services and tools in a controlled environment. The legislative amendments necessary to create the regulatory sandbox have been already submitted to the parliament. A new banking bill will be introduced in August.
In March, Majilis member Azat Peruaşev suggested that the monetary authority should collaborate with private banks to establish a “crypto bank” to provide a legal platform for cryptocurrency operations. His colleague Ekaterina Smyshlyaeva proposed an overhaul of digital asset regulations in Kazakhstan.
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