Kazakhstan Launches Consultation on Proposals to Improve Crypto Trading

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Financial authorities in Kazakhstan are launching a public consultation on a draft change to the country’s framework for digital-asset trading. The proposals include measures to reduce risk in the crypto market and improve the structure of the exchange platform.

The financial center of Kazakhstan is looking to amend its concept for trading digital assets

The Astana Financial Services Authority, which oversees the Astana International Financial Center (AIFC), has published a consultation paper detailing proposals aimed at upgrading Kazakhstan’s regulated ecosystem for cryptocurrency operations.

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The document suggests measures to reduce market risks in a government-controlled trading environment. The regulatory body has also drawn up solutions to reform the current structure of crypto platforms operating out of the financial hub of the Central Asian nation.

Crypto news outlet Forklog has invited residents of AIFC as well as other interested parties to participate in the consultation. Announcement, The managing authority will accept public feedback until February 25.

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The accepted proposals will be added to the draft amendments to the AIFC Digital Assets Trading Concept, which is expected to be released later this year. These include mechanisms to prevent market abuse, limit settlement risks, and disclose information to investors.

The initiative comes after the parliament in Nur-Sultan adopted a bill dedicated to regulating the country’s crypto space. Along with other legal acts, the Law “On Digital Assets in the Republic of Kazakhstan” introduces rules for mining and circulation of cryptocurrencies.

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The law also envisages the establishment of a licensing regime for crypto miners and exchanges to replace the existing registration system. Kazakhstan became a mining hotspot after China’s crackdown on the industry and is looking to regulate the sector and the sale of minted coins.

The influx of miners was blamed for the country’s growing power shortage and authorities are cracking down on unauthorized crypto farms. They have also removed many illegal crypto trading platforms as only exchanges registered with AIFC are allowed to provide such services.

Do you think Kazakhstan is taking steps to expand its legal framework for digital assets to become a regional crypto hub? Tell us in the comments section below.

Credit : news.bitcoin.com

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