Kazakhstan Imposes Central Bank Approval for Crypto Trading Coins

TLDR

• Kazakhstan has passed new legislation to regulate digital assets and control the crypto market.
• The central bank will approve which cryptocurrencies can be traded on licensed exchanges.
• New laws introduce a classification for digital assets including stablecoins and financial instruments.
• Crypto exchanges will require licenses from the central bank to operate in Kazakhstan.
• The National Bank of Kazakhstan will oversee the issuance and circulation of digital financial assets.

Kazakhstan has passed new legislation to regulate the digital asset market. The law gives the central bank the authority to approve which cryptocurrencies can be traded on licensed platforms. The new framework aims to bring more oversight to the growing crypto sector while safeguarding investors.

Regulatory Framework for Digital Assets

The new laws in Kazakhstan introduce a comprehensive regulatory structure for digital assets. The central bank will now oversee the licensing of crypto exchanges. This includes the approval of cryptocurrencies that can be traded legally on these platforms. A government statement clarified that the legislation is a part of broader efforts to strengthen the country’s financial systems.

The legislation also introduces a classification for digital assets, including stablecoins and other forms of digital financial instruments. Kazakhstan will now regulate the issuance, circulation, and exchange of these assets. This classification will allow authorities to have better control over what gets traded and how it is handled by exchanges.

Central Bank Takes Charge of Crypto Exchanges

The central bank will act as the primary authority for crypto exchanges operating in Kazakhstan. It will establish the criteria for which cryptocurrencies are allowed for circulation. The bank will also set limits on the trading activities of licensed exchanges.

The central bank will also determine which digital financial assets (DFAs) can be issued and traded in the country. The new legislation includes a provision for stablecoins, but excludes them from the DFA classification. The goal is to ensure that only approved assets are in circulation, offering a more secure trading environment.

The Role of the National Bank of Kazakhstan

The National Bank of Kazakhstan (NBK) will play a vital role in the country’s crypto sector. The NBK will be responsible for overseeing the creation and operation of cryptocurrency exchange organizations. It will also be charged with monitoring trading activity on approved platforms.

The bank’s regulatory duties will extend to setting up a list of digital assets that can be legally traded. It will also ensure that crypto exchanges comply with national standards for risk management and investor protection. With this level of oversight, Kazakhstan aims to maintain a balanced, controlled market for digital assets.

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