Kazakhstan Opens Doors to Crypto Investments: New Banking Law Changes the Game
A new law "On Banks and Banking Activities" is being prepared in Kazakhstan, which has already been submitted to the Mazhilis for consideration. The document promises to be an important step in modernizing the financial sector by introducing new rules for banks, including the possibility of investing in cryptocurrencies, the responsibility for the use of artificial intelligence (AI), and a prohibition on creating fictitious structures. The bill is aimed at strengthening the financial system, increasing transparency, and adapting to global technological trends.
Banks and Cryptocurrencies: Legalizing Investments
One of the key innovations of the bill is allowing banks to invest in digital assets, including cryptocurrencies. This decision marks a significant advancement in the integration of crypto assets into Kazakhstan's traditional banking system. According to reports, the National Bank of Kazakhstan has already legalized the activities of crypto exchangers and allowed operations with digital assets on licensed platforms within the Astana International Financial Centre (AIFC). The new law expands on this practice, enabling banks to participate directly in the cryptocurrency market.
Experts note that this change could attract additional investments to the country and strengthen Kazakhstan's position as one of the leaders in Central Asia in regulating digital assets. However, banks will be subject to strict requirements, including mandatory licensing and compliance with AIFC standards, to minimize risks of money laundering and financing illegal activities.
AI Responsibility: A New Level of Regulation
The bill also introduces norms regulating the use of artificial intelligence in banking activities. Banks that use AI for process automation, data analysis, or risk management will be held accountable for any errors or violations caused by algorithms. This reflects the global trend towards increased control over the use of AI in the financial sector, where accuracy and transparency of decisions are critically important.
According to analysts, such measures are aimed at protecting customers and increasing trust in banking services. In the context of active digitalization in Kazakhstan, including the creation of a separate ministry for AI, this step emphasizes the state's commitment to innovation with risk considerations in mind.
Prohibition on Fictitious Structures: Striving for Transparency
Another significant aspect of the new law is the prohibition on banks creating fictitious structures. This aims to prevent schemes related to money laundering, tax evasion, and other illegal operations. Legislation will require banks to ensure full transparency of their activities, in line with international financial regulation standards.
The Financial Monitoring Agency of Kazakhstan is already actively combating illegal operations, including the closure of 19 crypto exchangers with a turnover of more than $60 million in 2024. The new law will strengthen this work by providing regulators with additional tools for oversight.
Market Reaction and Prospects
The announcement of the new law has sparked lively discussions within Kazakhstan's financial community. According to Mazhilis deputy Yekaterina Smyshlyayeva, over a million Kazakhstani citizens are already involved in cryptocurrency transactions, highlighting the importance of regulation. Allowing banks to invest in crypto assets could stimulate the growth of the legal cryptocurrency market but will require clear control mechanisms.
Simultaneously, the prohibition on fictitious structures and AI regulation demonstrate Kazakhstan's ambition to create a sustainable and transparent financial system. The law is expected to be adopted by the end of 2025, after which its phased implementation will begin.
Conclusion
The new law "On Banks and Banking Activities" will be an important milestone in the development of Kazakhstan's financial sector. Allowing investments in cryptocurrencies opens new opportunities for banks, while AI regulation and the prohibition on fictitious structures enhance transparency and security of operations. These changes solidify Kazakhstan's position as a regional leader in financial innovation but require careful implementation to minimize risks.