The Astana Financial Services Authority, the body that oversees the Astana International Financial Center (AIFC), has published a consultation paper detailing proposals aimed at upgrading Kazakhstan’s regulated ecosystem for cryptocurrency operations.
It has been reported that the document suggests measures to reduce market risks in the government-controlled trading environment. The regulatory body has also prepared solutions to improve the current structure of the crypto platforms working out of the Central Asian nation’s financial hub.
However, residents of the AIFC, as well as other interested parties, have been invited to participate in the consultation, the crypto news outlet Forklog reported, quoting the announcement. The managing authority will accept public feedback until February 25.
The report said that the approved proposals will be added to the draft amendments to the AIFC Digital Assets Trading Concept expected to be released later this year. Among them are mechanisms to prevent market abuse, limit settlement risks and disclose information to investors.
Likewise, the initiative comes after the parliament in Nur-Sultan adopted a bill devoted to regulating the country’s crypto space. Along with other legal acts, the law “On Digital Assets in the Republic of Kazakhstan” introduces rules for the mining and circulation of cryptocurrencies.
The legislation also envisages the establishment of a licensing regime for crypto miners and exchanges to replace the existing registration system. Kazakhstan became a mining hotspot following China’s crackdown on the industry and has been looking to regulate the sector and the sale of minted coins.
Thus, the influx of miners was blamed for the country’s growing power deficit and authorities have been cracking down on unauthorized crypto farms. They have also taken down a number of illegal crypto trading platforms as only exchanges registered at the AIFC are allowed to provide such services.
Source: Bitcoin.com