Kazakhstan has become one of the top cryptocurrency hubs in the world. Following the ban on cryptocurrencies in China last year, the country’s crypto economy has expanded after becoming an ideal location for miners.
For this reason, the government of Kazakhstan has launched a pilot phase to encourage selected local banks to work with licensed cryptocurrency exchanges.
Kazakhstan asks exchanges to work with banks
The Kazakh government has approved guidelines that will guide a pilot program that will promote cooperation between some of the leading financial institutions and licensed cryptocurrency exchanges in the country.
The announcement said that cryptocurrency exchanges licensed by the Financial Services Regulatory Commission can open bank accounts and seek financial services from second-tier banks in Kazakhstan.
The pilot phase was created by a special working group composed of representatives of government agencies. The group included some representatives of the central bank of Kazakhstan, the Ministry of Digital Development and various agencies and associations representing the financial sector.
The pilot program will run until the end of the year. If successful, the country will amend the existing regulatory framework and create a robust framework that promotes the growth of the local cryptocurrency sector.
taking advantage of the hype
The Kazakh government has actively promoted a friendly regulatory framework for the cryptocurrency industry. The current pilot program stems from plans made in 2021. At the time, the government said the program would run for one year and would allow the government to conduct a cost-benefit analysis of the cryptocurrency market.
The partnership between the banking sector and the digital asset sector is part of the Kazakh government’s efforts to attract more cryptocurrency businesses. The country has so far attracted BTC miners but is now exploring other areas.
Kazakhstan’s Minister of Digital Development Bagdat Musin said that “the cryptocurrency industry is not just mining but also includes cryptocurrencies, digital currencies, digital wallets and other blockchain technologies. This is an industry that, like other industries, can work for the good of the country and benefit our economy.”
Kazakhstan currently supports cryptocurrency mining activities. Musin said the country needed to expand its industry revenues by tapping into the deals made with mined cryptocurrency assets. He said the move would help the country reach the next phase of fintech prowess.