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Kazakhstan,\u00a0one of\u00a0the world\u2019s biggest<\/a>\u00a0Bitcoin (BTC<\/a>)\u00a0mining destinations, issued a consultation paper to gauge public interest in proposed amendments to improve the cryptocurrency trading framework.<\/p>\n The policy paper<\/a>,\u00a0released on Jan. 27, was laid down by the Astana Financial Services Authority (AFSA), a Kazakh regulator. The AFSA pointed out that the Astana International Financial Centre\u2019s Digital Asset Trading Facility (DATF) regulatory framework dates back to 2018 and that the amendments seek to introduce certain enhancements. <\/p>\n AFSA\u2019s analysis highlighted problems related to the ongoing supervision of crypto exchanges, revealing \u201ccontradictions, inefficient provisions and uncertain definitions within the regime.\u201d It recommended introducing risk mitigation measures around several fronts, including governance, illicit activity, safekeeping of clients\u2019 funds and settlement.<\/p>\n Regarding DATF framework restructuring, the paper recommended three options \u2014 keeping the existing framework form, developing a standalone DATF framework and treating crypto exchanges as a multilateral trading facility.<\/p>\n The AFSA believes that the policy recommendations will bring about several improvements,\u00a0including risk mitigation related to crypto operations and the industry in general. In addition, the enhancements will address contradictions and unclear provisions of the existing framework. The final outcome, expected by AFSA, is to create a favorable regime for crypto exchanges while encouraging innovation.<\/p>\n According to the policy paper, the proposed measures will have a positive impact on crypto trading industry: <\/p>\n \u201cThis will collectively help to create more a clear, convenient, efficient, detailed and balanced AIFC DATF framework with high standards for consumer protection, without hindering development of crypto exchanges.\u201d<\/p><\/blockquote>\n On an end note, the paper revealed that the review of the DATF framework aligns with the \u201cAFSA\u2019s Strategy for 2022\u201d initiative, where the development of \u201cDigital Assets framework: Crypto exchanges, STO and DASP\u201d is one of three key regulations development objectives.<\/p>\n Related: Kazakhstan ready to legalize crypto as Russians flock to the country<\/a><\/em><\/strong><\/p>\n On the other end of the spectrum, Kazakhstan\u2019s central bank recommended launching an in-house central bank digital currency (CBDC) in 2023, with a phased expansion of functionality and introduction into commercial operation until the end of 2025.<\/p>\n In October 2022, Binance CEO Changpeng \u201cCZ\u201d Zhao<\/a>\u00a0revealed that Kazakhstan\u2019s CBDC would be integrated with BNB Chain, a blockchain built by the crypto exchange.<\/p>\n<\/div>\n