Kazakhstan Eyes Crypto Banks Offering Exchange, Storage: Report

Kazakhstan is exploring the launch of crypto banks as part of its broader push to build a sustainable and regulated digital asset ecosystem, according to a statement by Prime Minister Olzhas Bektenov on April 25.

The remarks came in response to a formal inquiry by members of the Mazhilis, the lower house of Parliament, according to a report from local news outlet Asana Times.

Bektenov emphasized that crypto banks would provide essential services such as digital asset exchange, secure storage, and transaction processing.

These services are expected to be delivered by a range of infrastructure providers, including digital asset platforms, custodians, brokers, and dealers.

Many of these entities already operate under the Astana International Financial Centre (AIFC), Kazakhstan’s regulatory hub for financial innovation.

The Prime Minister noted that Kazakhstan is currently working on legislative amendments to liberalize digital asset circulation and expand platforms for crypto-related activities.

He also underscored the importance of developing institutional support, including crypto banks, to enhance regulatory oversight and transparency.

Beyond offering traditional banking functions to digital asset market participants, crypto banks would contribute to anti-money laundering efforts and support compliance with terrorism financing regulations.

JUST IN: KAZAKHSTAN GOVERNMENT TO LAUNCH NATIONAL #BITCOIN AND CRYPTO EXCHANGE

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They are also expected to play a key role in driving domestic innovation in IT and blockchain technologies.

Bektenov stated that the introduction of crypto banks would improve Kazakhstan’s appeal to international investors, showcasing the country’s readiness to embrace decentralized finance within a regulated framework.

He added that such institutions would also spur demand for skilled professionals in fields like compliance, blockchain analysis, and financial security.

“The emergence of such institutions will create demand for new specialists, particularly in compliance, blockchain analytics, and anti-money laundering, and will also ensure the growth of liquidity of fiat and digital assets within the AIFC.”

Last month, a lawmaker in Kazakhstan told the government it should create a crypto bank that could act as a legal exchange and custody platform.

In 2023, Kazakhstan officially blocked Coinbase website, citing violations of the country’s new digital assets law.

While several other crypto exchanges, including Binance, Bybit, and Upbit, have received licenses to operate in Kazakhstan, Coinbase and Kraken have faced restrictions.

Further, the nation has already blocked foreign brokers and crypto exchanges, following reports by the Telegram channel FINANCE.kz. They highlighted that most of these websites were inaccessible in Kazakhstan without using a VPN.

The country has adopted a rigorous approach to crypto, including mining. Kazakhstan’s financial regulators have frozen $1.2 million in cryptocurrency and shut down 19 illegal over-the-counter platforms.

Additionally, AFM targeted illegal crypto-mining operations, dismantling nine mining sites and seizing around 4,000 mining rigs.

However, per a recent report by RISE Research and Freedom Horizons, Kazakhstan’s population owning cryptocurrencies has doubled in two years.

There has been a notable increase in tax revenues from the country’s burgeoning digital asset sector in 2024, it noted.

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