Kazakhstan plans to launch a pilot project on developing and operating cryptocurrency exchanges in the Astana International Financial Centre.
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The program is expected to bring together cryptocurrency exchanges, local banks, and government bodies in a mutual corporation at the hub.
The news follows an announcement by the Kazakh authorities for the amendment of the current laws to block banking services from facilitating cryptocurrency activities.
The changes subject the cryptocurrency to due diligence, including assessing the source of the original funds and the nature of the cooperation with the financial agencies.
AIFC was unveiled in 2018 to advance Kazakhstan’s non-banking financial sector and as a financial hub for Central Asia. The entity currently has 1,064 registered companies.
Kazakhstan gained popularity when cryptocurrency miners moved to the country following a crackdown in China. The industry later faced scrutiny from the government due to inefficient energy use.