Kazakhstan Restricts Crypto Trading to Central Bank-Approved Coins Only

Core Insights - Kazakhstan has enacted legislation to establish a comprehensive regulatory framework for digital assets, granting the central bank authority over cryptocurrency trading on regulated exchanges [1][2]. Regulatory Framework - The new legislation includes over five amendments addressing financial market regulation, communications, and bankruptcy procedures, while tightening controls on unsecured cryptocurrencies like Bitcoin and Ethereum [2]. - A three-tier digital asset framework has been introduced, categorizing digital financial assets into three types, each with different oversight mechanisms [3]. Categories of Digital Assets - The first category includes stablecoins backed by fiat currency, which will be regulated by the National Bank regarding their issuance, circulation, and redemption [3]. - The second category consists of digital financial assets backed by financial instruments, property rights, goods, or other tangible assets [4]. - The third category involves financial instruments issued electronically on digital platforms, with operators needing to be licensed and adhere to traditional financial instrument requirements [4]. Cryptocurrency Regulations - The legislation addresses unsecured digital assets, specifically cryptocurrencies like Bitcoin and Ether, and establishes licensed cryptocurrency exchange organizations supervised by the National Bank [5]. - The National Bank will create a list of approved cryptocurrencies for circulation and impose operational limits and restrictions on crypto exchanges to protect investors [5]. Compliance and Enforcement - Crypto exchanges and digital asset market participants will be classified as entities subject to financial monitoring for anti-money laundering and counter-terrorist financing purposes [6]. - The regulatory push follows months of enforcement actions against unauthorized crypto activities in Kazakhstan [7].