Kazakhstan’s regulator proposes to ban banks from making payments to foreign crypto exchanges

Amendments to the regulation of financial institutions have been published for public discussion until October 30

16.10.2024 - 16:35

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What’s new? The Kazakh Agency for Regulation and Development of the Financial Market (KARDFM) has proposed to prohibit banks from conducting customer payments in favor of foreign crypto exchanges. The corresponding amendments to the regulation of financial organizations, KARDFM published for public discussions, which will last until the end of the month.

Material by Interfax

What else is known? According to the document, banks will not be able to process transfers and customer payments to foreign platforms for trading digital assets that are not members of the Astana International Financial Center (AIFC)

It is also proposed to strengthen control over bank customers with more than five payment cards. For them, a limit on payments and transfers of 100 000 tenge per month is introduced, if transactions are made in favor of digital exchanges not registered in the AIFC.

If a bank client conducts a one-time transaction of more than $1000 with an AIFC-registered crypto exchange, the bank must conduct enhanced checks on the origin of funds to prevent their illegal withdrawal abroad.

In October, the Astana Financial Services Authority (AFSA) granted Binance, the world’s largest crypto exchange, a fully regulated Digital Asset Trading Facility (DATF) license.

In June, Kazakh authorities legalized the native token of the TON blockchain. This happened after Pavel Durov, the creator of TON and messenger Telegram, visited the AIFC. In October, it became known that Telegram would open an office in Kazakhstan to improve regulatory compliance.

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