National Bank of Kazakhstan to allow QR code top-ups for crypto exchange accounts

The monetary authority in Kazakhstan intends to allow cryptocurrency users to replenish their exchange-hosted accounts using QR codes at point-of-sale (POS) terminals.

The announcement comes after earlier statements by officials indicated that Astana plans to legalize some crypto operations, such as investments and trading, but keep others, like payments with digital coins, outside the law.

Kazakhstan’s central bank to open QR payments for crypto traders

Kazakhstan’s QR-code system will support payments to cryptocurrency exchanges through bank terminals, the country’s main financial regulator has made it clear.

Responding to a media inquiry, the National Bank of Kazakhstan (NBK) noted that the rules that are being introduced aim to legalize the circulation of digital assets in the Central Asian Nation.

Under the updated legislation, transactions will be processed by approved providers, which will be able to purchase, store, sell, and exchange both secured and unsecured digital financial assets (DFAs). The latter term is used to describe decentralized cryptocurrencies like Bitcoin (BTC).

In a statement sent to the LS business news outlet, the central bank elaborated:

“Furthermore, by expanding interaction between DFA service providers and banks and payment organizations, it will be possible to introduce new innovative crypto-fiat products.”

Besides facilitating payments to crypto exchanges via QR codes, this cooperation should also help with the issuance of crypto cards, crypto acquiring, and other services, the NBK added, as quoted by the financial news portal Banker.kz.

The monetary authority is currently developing the regulations necessary to govern the operations of the digital-asset service providers. They are expected to be adopted in March.

Kazakhstan takes the road to becoming a regulated crypto hub

In the past months, Kazakhstan has taken a series of steps to comprehensively regulate its growing cryptocurrency space and the industry built around it.

Last November, President Kassym-Jomart Tokayev signed legislation 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 another two laws, concerning the banking and the financial sectors, which also liberalize the crypto market.

Under these, crypto investments and trading will be treated as legitimate activities, but the use of digital currencies for payments will not be permitted, as reported by Cryptopolitan.

All these legislative changes legalize the turnover of cryptocurrencies and related activities beyond the current narrow framework of the Astana International Financial Center (AIFC).

Until recently, only entities registered as residents of the fintech hub in Kazakhstan’s capital were allowed to legally engage in the provision of crypto trading services, for example.

Earlier this month, the NBK insisted the regulated digital-asset market “will provide consumers with a legal and accessible channel for conducting transactions with digital financial assets and cryptocurrencies.”

According to the statement, also quoted by LS, the authority is convinced that the rules will guarantee “the transparency of crypto transactions, control over individual transfers, liquidity flows, and the protection of the rights and interests” of private investors. It elaborated:

“To ensure an adequate level of protection for crypto investors’ rights, the National Bank will establish, through bylaws, regulatory limits on crypto transactions through specified crypto providers, a list of cryptocurrencies permitted for circulation, and other restrictions related to the qualifications of crypto investors.”

The bank will be responsible for both licensing and oversight in the crypto industry. The adopted legislation adds crypto service providers to a list of entities subject to financial monitoring.

The regulator will also develop the standards and requirements for the issuance of digital financial assets and determine the rules for the use of fiat-pegged stablecoins.

The government in Astana hopes that the new crypto regulations will help bring back financial assets that have left the country.

Last week, President Tokayev admitted that despite the measures taken by the executive power, attempts to siphon funds through cryptocurrency continue.

He went even further, declaring his country had become a global leader in terms of capital flight, and alleged that crypto is used for tax evasion and money laundering.

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