Rockin' with Crypto Banks: Kazakhstan's Dive into Digital Assets
Contemplates Establishing Cryptocurrency-Centric Financial Institutions in Kazakhstan
ASTANA - In the heart of Central Asia, Kazakhstan is ready to ride the cryptocurrency wave, with Prime Minister Olzhas Bektenov confirming plans to establish crypto banks. This bold move is set to shape Kazakhstan's digital landscape, as revealed in a parliamentary inquiry on April 25, 2025.
Photo credit: Kazakhstan Today
According to members of the Mazhilis, Bektenov outlined the cryptobanks' fundamental duties, such as managing digital asset exchange, storage, and transaction support, within the burgeoning digital ecosystem. These responsibilities will be carried out by a network of infrastructure entities, including cryptocurrency exchange service providers, digital asset platform operators, custodians, brokers, and dealers – many of which are already under the Astrana International Financial Centre (AIFC)'s jurisdiction.
These players will offer a plethora of digital services, abiding by international standards and operating within a secure, regulated environment.
The government is drawing up legislation to loosen digital asset circulation and expand their exchange platforms. Emphasis is particularly given to fostering related financial institutions, namely crypto banks, which will cater to newcomers in the digital market.
Crypto banks will contribute to increased transparency in digital transactions, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. They will also play a pivotal role in digital asset projects, promoting domestic IT advancements and blockchain technologies.
"The emergence of crypto banks will amplify Kazakhstan's appeal in the realm of decentralized finance," Bektenov expressed, noting the maturity of the country's financial infrastructure in this context. This digital shift is anticipated to create demand for expertise in compliance, blockchain analytics, and AML, fostering growth in liquidity for both fiat and digital assets within the AIFC.
Behind the Scenes:
These crypto banks, framed within regulation-friendly hubs like the AIFC, will offer core services such as digital asset exchange, custody, and transaction processing. Their impact on Kazakhstan's economy and the digital sphere includes:
- Regulatory oversight: Enhancing transparency and ensuring compliance with AML and CTF standards.
- Market development: Creation of demand for blockchain analysts, compliance experts, and financial security professionals.
- Investment appeal: Strengthening Kazakhstan’s position in decentralized finance by offering a secure and internationally-aligned regulatory environment.
- Technological growth: Encouraging domestic IT and blockchain innovation through institutional support.
The AIFC's existing infrastructure–brokers, custodians, and digital asset platforms–will serve as the foundation for these crypto banks, and pending legislation is expected to solidify their operational scope.
- The crypto banks, as part of the Astana International Financial Centre (AIFC), will offer services such as digital asset exchange, custody, and transaction processing.
- Regulatory oversight by the crypto banks will enhance transparency, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) standards.
- The establishment of crypto banks is anticipated to create demand for expertise in compliance, blockchain analytics, and AML, fostering growth in liquidity for both fiat and digital assets within the AIFC.
- Additionally, the creation of crypto banks will encourage technological growth, promoting domestic IT and blockchain innovation in Kazakhstan.
