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Kazakhstan Plans New Restrictions On Bank Payments To Unregistered Crypto Exchanges

  • Banks to block payments to non-AIFC registered crypto exchanges.
  • Stricter controls on clients with more than five bank cards.
  • Heightened scrutiny for high-value transactions over $1,000.

Kazakhstan’s Agency for Regulation and Development of the Financial Market is proposing new restrictions on payment to the unregistered cryptocurrency exchanges. Exchanges not registered with the Astana International Financial Centre (AIFC) must have their transactions denied automatically by banks.

The proposal includes new controls on some financial transactions, which are open for public consultation until October 30, 2024.

Amendments Target Cryptocurrency and Gambling Transactions

The draft resolution aims to amend existing regulations in Kazakhstan on financial organizations. Banks will now be prohibited from sending money to cryptocurrency or cryptocurrency-related exchanges that have not been registered with AIFC.

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In addition, there will be restrictions on legal operations from accepting payments from individuals under 21, including transfers to electronic and internet casinos. These restrictions will apply to clients with more than five bank cards, lowering the threshold from the previous limit of ten cards.

There will be a limit of up to three transactions totaling up to 100,000 tenges per month for payments to unregistered digital exchanges. The measures are some of Kazakhstan’s efforts to bring a tighter grip on digital asset transactions and online gambling activities.

Stricter Scrutiny for High-Value Transactions

Kazakhstan’s draft law requires banks to scrutinize more thoroughly in cases of digital asset management services transactions. Banks will closely monitor any single transaction exceeding $1,000 with AIFC-registered participants.

Additional measures include verifying the source of funds and preventing illegal transfers abroad, especially to offshore accounts.

Kazakhstan’s financial hub, the AIFC, is built in the capital to attract investment. It regulates cryptocurrency exchanges operating within its jurisdiction to strict regulatory and compliance requirements. Ten cryptocurrency exchanges, including Onyx Trade Ltd. and Bybit Limited, operate legally at the AIFC.

Expanding Regulation of Kazakhstan’s Crypto Industry

The regulatory framework for cryptocurrency and digital asset developments has been in place in Kazakhstan. On April 1st, 2023, the Law on Digital Assets paved the way for creating the legal basis that facilitates the issuance and circulation of digital assets in the country.

This law allows cryptocurrency activities within the AIFC, offering a legal pathway for licensed exchanges to operate in Kazakhstan.

This has made AIFC a center for digital asset trading, where licensed exchanges legally trade cryptocurrency with fiat currency. As per regulation, cryptocurrency trading, payment, and exchange services can be offered by exchanges that have registered with the AIFC, as well as Neyco Ltd. and Biteeu Eurasia Ltd. The purpose of this system is to promote compliance with anti-money laundering and terrorist financing legislation.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Olivia Stephanie
Olivia Stephanie
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.