Kazakhstan Government Contemplates Introducing Cryptocurrency Banks
In a stunning move, Kazakhstan's Prime Minister, Olzhas Bektenov, has expressed his interest in the establishment of cryptobanks within the country. This decision comes after extensive discussions on the matter, as reported by our news desk.
The introduction of cryptobanks would see them performing basic functions such as digital asset exchange, storage, and transaction support. These duties will be assigned to operators of cryptoplatforms, exchanges, brokers, custodians, and dealers, including those operating through Astana International Financial Center (AIFC). This move aims to provide these businesses with a safe and regulated environment for offering a wide range of digital services, mirroring global standards.
According to recent reports, the global cryptobank market was valued at 5.29 billion USD in 2024. This figure is projected to skyrocket to 63.15 billion USD by 2034, reflecting the growing popularity of digital assets. The trading volume of digital assets in 2024 reached an impressive 18.83 trillion USD, marking a staggering 134% increase from the previous year.
As part of their plan to embrace the digital era, the government is working on simplifying the handling of digital assets and expanding platforms for their trading. Infrastructure development is underway, with a particular focus on financial institutions related to digital assets.
The introduction of cryptobanks will provide comprehensive services to new market participants. They are expected to make operations with digital assets more transparent and controllable, thereby aiding in the combat of money laundering and terrorist financing. Additionally, the deployment of cryptobanks is anticipated to drive growth in IT and blockchain technology, making Kazakhstan more appealing to investors in the realm of decentralized finance (DeFi).
The gradual integration of cryptobanks into the financial system is being considered. As we move forward, the government will take into account the development of infrastructure, the accumulation of practical experience, and international standards before making a final decision.
It's important to note that this move comes after the liquidation of several cryptocurrency exchanges with a turnover of 60 billion in Kazakhstan.
Some, like Aqqazaq, welcome the idea of decentralized financial services (DeFi), emphasizing the importance of transparency and centralization. Others, such as Not Nur Nurov, express concerns about capital flight, terrorist financing, money laundering, and the responsibility of cryptocurrency exchanges.
In the end, it's a matter of balancing the benefits that cryptobanks can bring, such as increased investment attractiveness, job creation, and technological advancement, against potential risks and challenges. The government's approach will be carefully considered, with a focus on fostering a sustainable digital ecosystem.
Stay tuned for more updates on Kazakhstan's foray into the world of cryptobanks!
- Operators of cryptobanks, exchanges, brokers, custodians, and dealers, including those operating through Astana International Financial Center (AIFC), will be tasked with performing functions such as digital asset exchange, storage, and transaction support.
- The integration of cryptobanks into the financial system is being considered, with the government taking into account the development of infrastructure, the accumulation of practical experience, and international standards before making a final decision.
- The introduction of cryptobanks is anticipated to drive growth in IT and blockchain technology, making Kazakhstan more appealing to investors in the realm of decentralized finance (DeFi).
- The growing popularity of digital assets, as reflected by the projected increase in the global cryptobank market, is a key factor in Kazakhstan's interest in the establishment of cryptobanks within the country.
