As part of a goal to become a regional hub, Kazakhstan is seeking to establish a $1 billion Bitcoin crypto reserve within the year.
The government of Kazakhstan has adopted a new legal framework for digital assets after President Kassym-Jomart Tokayev signed legislation that sets rules for both crypto trading and other tokenised financial products.
According to the announcement, a central feature is the expanded role of the National Bank of Kazakhstan (NBK). Under the law, the NBK will license cryptocurrency exchanges, decide which cryptocurrencies can be traded on regulated platforms, and set limits on trading activity.
The legislation updates banking and financial market laws and introduces formal categories for digital assets. It defines stablecoins, assets backed by financial instruments and property, and financial instruments issued in digital form.
New Assets Class Created
The rules also create a new asset class called “digital financial assets” (DFAs), split into three types. The Agency for Regulation and Development of the Financial Market (ARDFM), which developed the legislation, is tasked with setting requirements for issuing, circulating and redeeming DFAs, excluding stablecoins.
Companies that operate digital platforms and issue DFAs will need licences from the central bank, and will face standards similar to traditional markets, including risk management, disclosure and investor-protection requirements.
For cryptocurrencies, the law treats assets such as Bitcoin (BTC) and Ethereum (ETH) as “unsecured digital assets” and establishes licensed crypto exchange organisations to handle trading. Investor protections include a permitted list of crypto assets approved for circulation and operational restrictions that the NBK can impose on exchanges.
Kazakhstan presented its digital-asset regulation attempt as part of a broader effort to become a regional hub in Central Asia.
Besides supporting stablecoin payments, the country is seeking to establish a Bitcoin crypto reserve worth about US$1 billion (AU$1.49 billion) this year.
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