Kazakhstan Set to Float New Platform for Crypto Conversion to Fiat

According to local media, Kazakhstan’s President Kassym-Jomart Tokayev says Kazahstan is ready to consider crypto conversion to fiat currency if there is considerable demand. The president also stressed that for the project to get complete legal recognition, it must have a dual feature of relevance and security.

Currently, a pilot program to convert cryptocurrencies is ongoing at the country’s financial hub Astana International Financial Centre (AIFC). If the project is successful, Tokayev will approve and adopt the project to continue.

Earlier in the year, Astana started a collaboration with Kazakhstan banks and an approved cryptocurrency exchange platform. The pilot program is targeted at the process of simultaneously creating user accounts on both crypto exchange platforms and Kazakhstani banks.

Some of the participants in the projects include ATAIX, Intebix, Eurasian Bank, Altyn Bank, and Halyk Bank. The duo of Eurasian Bank and Intebix have jointly completed the first crypto purchase for fiat. This milestone now makes it possible for Kazakhstan citizens to acquire crypto using the national currency (Tenge).

In conclusion, Tokayev highlighted the nation’s quest to lead the digital economy space as well as the cryptocurrency ecosystem. Through the regulator’s efforts, the AIFC has been positioned as a global leader in embracing digital currencies as a part of its transformation agenda.

Kazakhstan partners Binance

Meanwhile, Kazakhstan’s Astana Financial Services Authority (AFSA) has cleared Binance, the world’s largest cryptocurrency trading platform by trade volume to operate in the country after awarding it an in-principle approval. 

With the approval, Binance will operate a Digital Asset Trading Facility and Provide Custody in the AIFC. This makes the exchange one of the first trading platforms to operate in the current digital transformation agenda of the country.

Before Binance’s approval, it agreed to a memorandum of understanding with the Kazakhstan government to help its push in bringing innovative regulations into the cryptocurrency ecosystem.

The MoU positioned Binance as a key partner in helping the country with digital transformation initiatives, especially as it borders on distributed ledger technology. Binance will introduce a blockchain-powered VC fund and an academy as part of the agreement.