Here's how Kazakhstan aims to enhance its legacy crypto trading framework

Kazakhstan, 1 of the biggest Bitcoin (BTC) mining destinations successful the world, issued a consultation insubstantial to gauge nationalist involvement successful projected amendments to amended the cryptocurrency trading framework.

The policy paper, released connected Jan. 27, was laid down by the Astana Financial Services Authority (AFSA), a Kazakh regulator. The AFSA pointed retired that the AIFC Digital Asset Trading Facility (DATF) regulatory model dates backmost to 2018 and that the amendments question to present definite enhancements.

AFSA’s investigation highlighted problems related to the ongoing supervision of crypto exchanges — revealing “contradictions, inefficient provisions and uncertain definitions wrong the regime.” It recommended introducing hazard mitigation measures astir respective fronts, including governance, illicit activity, safekeeping of clients’ funds and settlement.

When it comes to DATF model restructuring, the insubstantial recommended 3 options — keeping the existing model form, processing a standalone DATF model and attraction of crypto exchanges arsenic a multilateral trading installation (MTF).

The AFSA believes that the argumentation recommendations volition bring astir respective improvements, including hazard mitigation related to crypto operations and the manufacture successful general. In addition, the enhancements volition code contradictions and unclear provisions of the existing framework. The last outcome, expected by AFSA, is to make a favorable authorities for crypto exchanges portion encouraging innovation.

According to the argumentation paper, the projected measures volition person a affirmative interaction connected crypto trading industry:

“This volition collectively assistance to make much a clear, convenient, efficient, elaborate and balanced AIFC DATF model with precocious standards for user protection, without hindering improvement of crypto exchanges.”

On an extremity note, the insubstantial revealed that the reappraisal of the DATF model aligns with the “AFSA’s Strategy for 2022” initiative, wherever the improvement of “Digital Assets framework: Crypto exchanges, STO and DASP” is 1 of 3 cardinal regulations improvement objectives.

Related: Kazakhstan acceptable to legalize crypto arsenic Russians flock to the country

On the different extremity of the spectrum, Kazakhstan’s cardinal slope recommended launching an in-house CBDC successful 2023 with a phased enlargement of functionality and instauration into commercialized cognition until the extremity of 2025.

In October 2022, Binance CEO Changpeng “CZ” Zhao had revealed that Kazakhstan’s CBDC would beryllium integrated with BNB Chain, a blockchain built by the crypto exchange.