Negative events in the cryptocurrency industry, such as collapse of FTX, underscored the need to raise the regulatory standards for digital assets. This is stated in a press release following a panel session at Astana Finance Days.
During a talk, Zain Umer, head of digital asset regulation at the Cambridge Centre for Alternative Finance, noted the adoption of a universal regulatory framework for the industry.
“We have two fantastic new crypto regimes in Dubai and Hong Kong […]. We see that developing countries are leading, and we hope they will develop a fair and proportionate regulatory regime that will allow innovation to flourish and reduce risks,” he stressed.
Participants drew attention to the European Union’s steps to create a regulatory framework for the industry. On 20 April, the European Parliament adopted the Markets in Crypto Assets regulation, which was seen as boosting trust in the sector.
“Founders and operators of crypto companies must demonstrate good market conduct and comply with a high-tech regulatory standard,” concluded Sopnendu Mohanty, Director of FinTech at the Monetary Authority of Singapore.
In another panel session, participants in the pilot project to link Kazakhstan’s second-tier banks with crypto exchanges registered at the МФЦА, discussed its interim results.
According to Binance Kazakhstan’s general manager Zhaslan Madiev, the country is the only post-Soviet state that has gone far in both regulation and market development.
“Considering all these factors—legislative, regulatory, and institutional—it is clear that Kazakhstan is best placed to develop players and the digital industry as a whole,” he added.
In January 2023, Kazakhstan’s President Kassym-Jomart Tokayev signed the Law on Digital Assets. It obliges miners to license their activities.
Cryptocurrency mining in the country is allowed only for participants of the Astana International Financial Centre and non-resident legal entities, subject to a contract with licensed data centres.