The pilot project on the interaction between cryptocurrency exchanges and second-tier banks has concluded

The pilot project on the interaction between cryptocurrency exchanges and second-tier banks has concluded

On February 1st, within the framework of the annual International Digitalization Forum, Digital Almaty 2024, a briefing was held on the topic "Completion of the pilot project on the interaction of cryptocurrency exchanges with second-tier banks," with the participation of Gizzat Baytursynov, Director of the Department of Electronic Industry Development and Digital Asset Industry of the MDDIAI of the RK, Maksat Shagdarov, Head of the Department for Combating Abuse on the Financial Market of ARDFM of the RK, and Erkegali Edenbayev, Managing Director of the Licensing and Financial Technologies Office of AIFC.

In June 2021, the Roadmap for the development of the crypto industry and blockchain technologies in the Republic of Kazakhstan was approved by the First Deputy Prime Minister of the Republic of Kazakhstan, and a working group of government agencies was created to implement the pilot project on the interaction of AIFC crypto exchanges with Kazakhstan’s second-tier banks.

In December 2022, the Pilot Project on the Interaction of AIFC Cryptocurrency Exchanges and Kazakhstani Second-Tier Banks was launched.

"The main goal of the project was to create a regulated environment for trading in unsecured digital assets, which is important for protecting the rights of both retail and professional investors in the Republic of Kazakhstan. For a year and a half, we have closely interacted with market participants, allowing us to achieve significant success. In particular, we were able to establish effective mechanisms of cooperation between AIFC cryptocurrency exchanges and Kazakhstan’s second-tier banks, contributing to the creation of an appropriate regulatory framework," noted Gizzat Baytursynov, Director of the Department of Electronic Industry Development and Digital Asset Industry of MDDIAI of the RK.

At the time of the pilot project's completion, six cryptocurrency exchanges (Binance Kazakhstan, Biteeu Eurasia Ltd., Top Line Limited, Upbit Eurasia Ltd., Bybit Limited, ATAIX Eurasia Ltd.) and eight second-tier banks (Altyn Bank JSC, People's Bank of Kazakhstan JSC, Bank CenterCredit JSC, Eurasian Bank JSC, Nurbank JSC, Islamic Bank Zaman Bank JSC, Bereke Bank JSC, Freedom Finance Bank Kazakhstan JSC) were participating.

Erkegali Edenbayev, Managing Director of the Licensing and Financial Technologies Office of AIFC, shared the results of the pilot project.

"During the pilot project period, the total turnover amounted to $239 million, the number of transactions was 63,000, and the total number of clients was 52,800," noted Erkegali Edenbayev.

Following the successful trial, the Procedure and Mechanism for the interaction of unsecured digital asset exchanges and AIFC-licensed participants engaged in digital asset-related activities with second-tier banks in the Republic of Kazakhstan have been approved. These steps will contribute to the further development of the crypto industry in Kazakhstan and enhance the country's attractiveness as a center for financial innovation.

 

MDDIAI Press service