Kazakhstan would like to enter the cryptocurrency marketplace — using its very own fiat-backed electronic currency.
The nation's government-supported Astana International Finance Center (AIFC) said Tuesday it had signed up a deal of collaboration using Maltese firm Exante. In a media release, Exante, that calls itself a “second generation investment firm,” stated it would work together with the AIFC to come up with the ex-Soviet country's untapped cryptocurrency marketplace.
“Astana's major financial regulators have begun their job and are laying the basis for Kazakhstan's fintech-ecosystem. We feel that the AIFC can develop into a global hub for blockchain operations and also the growth of the electronic assets marketplace is our primary priority in the not too distant future.”
In August, Estonia suggested its own state-backed digital currency, which could be known as “estcoin”. The tiny Eastern European country said it was contemplating the launching of estcoin via a first coin offering (ICO) — a crowdfunding system which has gained much scrutiny in recent weeks.
And last month, Japan suggested the possible launch of its own digital money, known as J-Coin.
Kazakhstan's entry into the electronic money ecosystem could be underpinned by Exante's brand new blockchain platform, ‘Stasis'.
Kazakhstan To Become A Cryptocurrency Hub
The Kazakhstan government has declared its intentions to produce the country host to “the most favorable business climate” for cryptocurrency and fintech companies. The statement comes from Kazakhstan's Astana International Financial Center (AIFC), which plans to operate in collaboration involving Deloitte, Waves, Kesarev Consulting, and Spiritual law company Justcutum in order to come up with a “highly progressive regulatory framework” to get blockchain and cryptocurrency businesses.
Kazakhstan has declared that the AIFC will function in partnership with Deloitte and Waves to produce a permissive regulatory apparatus for cryptocurrency, blockchain, and fintech companies. CEO of this AIFC Authority, Nurlan Kussainov, stated that the “AIFC intends to become a most favorable fintech jurisdiction with an open ecosystem and also the most innovative regulating framework. We invite our partners for the help give to our blockchain regulatory development initiative. In another phase of this project, our working staff will be considering broadening the involvement to include other business stakeholders”.
The news comes less than a month following the federal bank of Kazakhstan unveiled its strategy to issue bonds backed by the evolution of “a mobile application for its population to run transactions for the purchase and sale of securities on the grounds of both the blockchain and real-world currencies” The app is intended to ease the selling of bonds directly to investors and without commission, together with officials expecting that low trade costs and fast settlement times will bring in dozens of retail investors.
Kazakhstani officials recognize that the virtual currencies pose unique challenges to classical law, emphasizing that lawmakers shouldn't create a juridical frame that will endanger the dynamism and innovation of the cryptocurrency industries.
Head of Juscutum, Artem Afyan, clarified the ICO industry as “brand new, dynamic, and extremely difficult for classical law”, and as “as a perfect chance to make a new authority, which could be most favorable for crypto jobs in the world”.
This apparent excitement for cryptocurrency on the part of the Kazakstani government appears to be matched with the national trading people, with Kazakh Localbitcoins' listings showing record-breaking volume in recent weeks.