Kazakhstan’s Ministry of Digital Development, Innovations, and Aerospace, alongside other government working groups, has launched a pilot program that allows crypto exchanges registered under the Financial Services Regulatory Commission (AFSA) to open accounts in selected second-tier banks (STBs).
Banks to Collaborate with Crypto Exchanges
As per the announcement, the Kazakhstani authorities approved a guideline that allows selected local banks to collaborate with crypto exchanges for bank account opening and other banking services in the Astana International Financial Center (AIFC).
The pilot program was structured by a group of government authorities, including representatives from the Ministry of Digital Development, Innovation and Aerospace Industry, the National Bank of Kazakhstan, the members of the Regulation and Development of Financial Markets Agency, and the Astana International Financial Center.
The new crypto experiment, which will run until the end of the year, will allow the country to review its existing rules and policies to provide a comprehensive regulatory framework for crypto trading across the country.
Kazakhstan to Explore Other Areas of Crypto
Bagdat Musin, the Minister for Digital Development, noted that cryptocurrency is a broad sector that can benefit the country in many ways, including generating income capital from exchanges.
Aside from crypto mining activities, which generated up to $1.5 million in revenue for the country in their 2022 first quarterly earnings, Kazakhstan also plans to explore other aspects of the crypto industry.
“The crypto industry is not only mining but also includes cryptocurrency, digital currency, digital wallets, and other blockchain technologies. This is an industry that, like other industries, can work for the country’s good and benefit our economy. We need to turn the cryptocurrency exchange into a source of income and move to the next level of financial technology development,” said Musin.
Earlier in 2020, the Kazakhstan government said it had plans to improve its economy through cryptocurrency earnings. Coinfomania reported that the former Deputy Prime Minister of the Republic of Kazakhstan, Askar Zhumagaliyev formulated a plan with the help of external financial experts to generate up to 300 billion tenges ($738.4 million) in investments from cryptocurrencies and crypto mining in three years.
He added that the revenue from the activity would be used to develop the crypto mining industry and attract more profit.