Kazakhstan's President has instructed that a law on the interaction of banks with cryptocurrencies be adopted by the end of the year

Key points:

• Kazakhstan has begun work on a draft law “On banks and banking activities in the Republic of Kazakhstan.”
• Kazakhstan has begun work on a draft law “On banks and banking activities in the Republic of Kazakhstan.”
• Kazakhstan intends to review its attitude towards cryptocurrencies.

Members of the Majilis (lower house of parliament) have begun reviewing a draft law “On banks and banking activities in the Republic of Kazakhstan.” According to Tatyana Savelyeva, Chair of the Finance and Budget Committee, the document was developed to fulfill President Kassym-Jomart Tokayev’s directive on developing the financial sector. The law will regulate the legal framework for the creation of a national digital financial infrastructure and the circulation of digital tenge and cryptocurrencies.

In his annual address to the people of Kazakhstan, Tokayev stated:

“We need a new banking law that meets the current challenges of stimulating economic activity and further dynamic development of the fintech sector. The current law is almost 30 years old and was adopted in completely different circumstances. The government, together with the National Bank, must take effective measures aimed at the efficient use of budget funds, limiting and strictly controlling expenditures.”

According to the president, the profitability of banking assets and capital in Kazakhstan is several times higher than in developed countries:

“The law should provide for ways to increase competition and attract new participants to the market, as well as issues related to the promotion of fintech and the liberalization of digital asset turnover. The government, together with the Agency for Regulation and Development of the Financial Market, should thoroughly review this bill.”

Key provisions of the bill

The bill updates the principles of regulation and corporate governance, introduces new banking supervision rules, and changes the procedure for opening and licensing banks. Among the key changes are:

1. Basic banking license. Simplified access to the market for new players and incentives for the development of business lending.
2. Increased requirements for managers. Only qualified specialists will be able to manage financial institutions.
3. New procedures for troubled banks. Improvement of reorganization and liquidation mechanisms to protect depositors and ensure the stability of the system.

Kazakhstan’s attitude towards cryptocurrencies

Earlier, Minister of Digital Development, Innovation, and Aerospace Industry Zhaslan Madiyev presented a plan to reform the crypto market in Kazakhstan. His report suggests that the country plans not only to support miners, but to completely overhaul the industry — from the legalization of cryptocurrencies to the launch of the CryptoCity project.

Tokayev stressed the need to focus on cryptocurrencies and instructed the creation of a State Digital Asset Fund to accumulate a strategic crypto reserve from promising assets of the new digital order.