Kazakhstan’s monetary authority plans to allow crypto users to replenish their exchange-hosted accounts using QR codes on point-of-sale (POS) terminals.
The announcement followed earlier statements from officials indicating that Astana plans to legalize some cryptocurrency businesses, such as investing and trading, while leaving other businesses, such as payments with digital coins, exempt from the law.
Central Bank of Kazakhstan to introduce QR payment for virtual currency traders
Kazakhstan’s QR code system will support payments to crypto exchanges through bank terminals, the country’s main financial regulator has revealed.
In a media interview, the National Bank of Kazakhstan (NBK) pointed out that the regulations being introduced are aimed at legalizing the circulation of digital assets in the Central Asian country.
Under the updated law, transactions will be processed by approved providers and will be able to buy, store, sell and exchange both secured and unsecured digital financial assets (DFA). The latter term is used to describe decentralized cryptocurrencies like Bitcoin (BTC).
In a statement sent to LS Business News Outlet, the central bank elaborated:
“Additionally, expanding interactions between DFA service providers and banks and payment institutions will enable us to introduce new and innovative crypto and fiat products.”
In addition to facilitating payments to crypto exchanges via QR codes, this cooperation should also help Regarding the issuance of crypto cards, acquisition of cryptocurrencies, and other services, NBK added: Quoted by financial news portal Banker.kz.
Financial authorities are currently developing the necessary regulations to govern the operations of digital asset service providers. It is expected to be adopted in March.
Kazakhstan on path to becoming a regulated crypto hub
Kazakhstan has taken a series of measures in recent months to comprehensively regulate the growing cryptocurrency space and the industry built around it.
Last November, President Kassym-Jomart Tokayev signed a bill lifting some restrictions on the minting of digital currencies in the country, which has already established itself as a mining hotspot.
In mid-January, the head of state approved two other laws on the banking and financial sector, which also liberalized the cryptocurrency market.
Under these, investing and trading in cryptocurrencies will be treated as a legal activity, but, as reported by Cryptopolitan, using digital currencies for payments will not be allowed.
All these legal changes will legalize crypto trading and related activities beyond the current narrow framework of the Astana International Financial Center (AIFC).
For example, until recently, only entities registered as residents of the fintech hub in Kazakhstan’s capital were allowed to legally engage in activities such as providing cryptocurrency trading services.
Earlier this month, the NBK claimed that a regulated digital asset market “provides consumers with a legal and accessible channel to conduct transactions in digital financial assets and cryptocurrencies.”
According to a statement also cited by LS, the authorities are confident that the rules will ensure “the transparency of cryptocurrency transactions, the control of individual remittances and liquidity flows, and the protection of the rights and interests of retail investors.” It was detailed as follows.
“In order to provide an appropriate level of protection for the rights of virtual currency investors, the National Bank, through its bylaws, establishes regulatory limits on virtual currency transactions through specific virtual currency providers, a list of virtual currencies that are permitted to circulate, and other restrictions related to the qualifications of virtual currency investors.”
The bank will be responsible for both licensing and supervision in the crypto industry. The adopted bill adds cryptocurrency service providers to the list of entities subject to financial oversight.
The regulator will also develop standards and requirements for the issuance of digital financial assets and determine rules for the use of stablecoins pegged to fiat currencies.
The Astana government hopes new virtual currency regulations will help recover financial assets that have flown out of the country.
President Tokayev acknowledged last week that despite the measures taken by the executive branch, attempts to siphon funds through cryptocurrencies continue.
He went further, declaring that his country has become a world leader in capital flight and claiming that cryptocurrencies are being used for tax evasion and money laundering.
