Kazakhstan plans to enhance its legal crypto operations as President Kassym-Jomart Tokayev calls for quick improvements to its digital asset infrastructure.
In light of a more crypto-friendly approach in the U.S., Tokayev aims for rapid development to boost Kazakhstan’s position in the crypto sector.
During a government meeting, the President emphasized the need for Kazakhstan to adapt to the changing tech landscape. He highlighted that many crypto users remain in a regulatory “gray zone” and called for more transparent regulations and improvements in infrastructure.
Tokayev noted that only around 5% of crypto investors in Kazakhstan use regulated platforms, such as those in the Astana International Financial Center, including Galaxy Digital, SkyBridge Digital Finance, and Swiftex.
“According to experts, only 5% of Kazakhstan’s crypto investors use the Center’s platform, while the rest operate in the so-called ‘gray zone.’ Urgently, infrastructure for broader legal circulation of digital assets should be created. Financial regulators must focus on developing the appropriate legislative framework,”
Tokayev noted.
Kazakhstan’s financial watchdog, AFM RK, has intensified efforts against illegal crypto exchanges, blocking over 3,500 unregistered platforms in collaboration with the National Security Committee and the Ministry of Culture and Information. They shut down 36 illicit exchanges with a turnover of 60 billion tenge ($112.84 million) and seized 4.8 million USDT. The crackdown also addressed money laundering risks due to the absence of AML and KYC safeguards. Additionally, authorities dismantled two crypto pyramid schemes, recovering 545,000 USDT and freezing 120,000 USDT linked to these scams.
Notably, Mastercard has launched its Crypto Credential solution in Kazakhstan to enhance the security and ease of crypto transactions. This service allows users to send and receive digital assets using simple aliases instead of complex blockchain addresses. Mastercard is collaborating with local exchanges such as ATAIX Eurasia and Intebix for the rollout. Gaurang Shah, Mastercard’s EVP for Core Payments in EEMEA, emphasized the company’s focus on safer and more user-friendly cryptocurrency solutions.
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