Kazakhstan Moves Toward a National Crypto Bank Initiative
Kazakhstan is considering the creation of a national crypto bank to serve as a legal exchange and custody platform for digital assets. The proposal comes from Azat Peruashev, a deputy in the Mäjilis, Kazakhstan’s lower house of parliament. He suggests that the National Bank and regulated financial institutions should participate in this initiative.
Urgency for Crypto Regulation
Peruashev emphasized that Kazakhstan lacks a proper legal framework for cryptocurrency use. Currently, 90% of crypto transactions occur outside regulation, fueling tax evasion, financial fraud, and illicit fund transfers. The shadow economy has flourished due to the partial ban on crypto trading.
He warned that billions of tenge worth of cryptocurrency are being transferred abroad without state oversight. A crypto bank could introduce a secure system for exchanges and storage, reducing fraud and increasing financial transparency.
Government and Lawmakers Push for Reforms
The call for crypto regulation aligns with President Kassym-Jomart Tokayev’s vision for Kazakhstan to stay competitive in the digital economy. Earlier this year, Tokayev stressed the need to expand crypto infrastructure to ensure the country remains a fintech leader.
Deputy Ekaterina Smyshlyaeva also supports reforms. She suggested decriminalizing crypto trading for individuals using licensed platforms but insisted on stricter oversight for crypto operators. She urged the government to revise regulations on crypto-related offenses and integrate digital assets into Kazakhstan’s financial ecosystem.
Kazakhstan’s Changing Crypto Landscape
Kazakhstan has a complex relationship with crypto. The country’s mining sector expanded rapidly, attracting Bitcoin (BTC) miners due to low electricity costs. However, in 2022, energy shortages led to stricter regulations on industrial miners.
Despite the hurdles, international mining firms like Canaan continue to invest in Kazakhstan, adding new hash rates to their operations. While crypto transactions are not entirely banned, they must be conducted through platforms registered within the Astana International Financial Center (AIFC). Major exchanges like Binance and Bybit have already established a presence there.
As Kazakhstan navigates its digital finance transformation, the proposed crypto bank could redefine the country’s role in the global fintech landscape.
