Kazakhstan is exploring the launch of a cryptocurrency bank as part of its broad efforts to build a sustainable and regulated digital asset ecosystem.
According to Crypto News on the 30th (local time), Prime Minister Olzhas Bektenov announced plans to introduce a cryptocurrency bank on April 25th in a statement. According to local media Asana Times, this came in response to an official inquiry from members of the Mazhilis, the lower house of parliament.
Prime Minister Bektenov emphasized that the cryptocurrency bank will provide essential services such as digital asset exchange, secure storage, and transaction processing. These services will be provided through various infrastructure providers including digital asset platforms, custody services, brokers, and dealers. Many of these institutions are already operating within the Astana International Financial Centre (AIFC), Kazakhstan's financial innovation regulatory hub.
The Prime Minister mentioned that Kazakhstan is currently working on legal amendments to liberalize digital asset circulation and expand cryptocurrency-related activity platforms. He also emphasized the importance of developing institutional support, including the cryptocurrency bank, to strengthen regulatory oversight and transparency.
In addition to providing traditional banking functions to digital asset market participants, the cryptocurrency bank is expected to contribute to anti-money laundering efforts and support terrorist financing regulation compliance. It is also anticipated to play a key role in driving domestic innovation in IT and blockchain technology.
Prime Minister Bektenov stated that the introduction of the cryptocurrency bank will enhance Kazakhstan's attractiveness to international investors and demonstrate its readiness to embrace decentralized finance within a regulatory framework. He added that such an institution will also stimulate demand for skilled professionals in areas like compliance, blockchain analysis, and financial security.
"The emergence of such institutions will create demand for new professionals, especially in compliance, blockchain analysis, and anti-money laundering, and ensure the liquidity growth of fiat and digital assets within the AIFC," he said.
Last month, a Kazakhstani legislator proposed that the government create a cryptocurrency bank that could serve as a legitimate exchange and custody platform.
In 2023, Kazakhstan officially blocked the Coinbase website for violating the new digital asset law. While several cryptocurrency exchanges including Binance, Bybit, and Upbit received operating licenses in Kazakhstan, Coinbase and Kraken faced restrictions.
Moreover, the country has already blocked foreign brokers and cryptocurrency exchanges. According to a report by the Telegram channel FINANCE.kz, most of these websites could not be accessed in Kazakhstan without using a VPN.
Kazakhstan has adopted a strict approach to cryptocurrencies, including mining. The Kazakhstani financial regulatory authority has frozen $1.2 million in cryptocurrencies and closed 19 illegal over-the-counter trading platforms. The AFM also targeted illegal cryptocurrency mining operations, closing 9 mining sites and seizing approximately 4,000 mining devices.
However, according to a recent report by RISE Research and Freedom Horizons, the population holding cryptocurrencies in Kazakhstan has doubled in two years. The report mentioned that tax revenues from the growing domestic digital asset sector have notably increased in 2024.
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