Digital tenge to be officially recognized as national currency
Regulation for digital financial assets (DFAs) as a new class of assets will be introduced in Kazakhstan under a new banking law. Madina Abylkassymova, Chairperson of the Agency for Regulation and Development of the Financial Market (ARDFM), announced this while presenting the bill in the Majilis, Kazinform News Agency reports.
According to her, the draft law establishes three types of DFAs:
1) Stablecoins - digital assets that certify monetary claims;
2) Digital financial assets backed by an underlying asset;
3) Financial instruments issued in digital form.
The National Bank will regulate the issuance and circulation of stablecoins. The ARDFM will be granted new powers to set requirements for the issuance and circulation of digital financial assets backed by an underlying asset and financial instruments issued in digital form.
Digital financial assets will be issued by new financial market entities - digital platform operators, whose activities will be licensed by the National Bank.
"Digital financial assets will be subject to requirements comparable to those for traditional financial instruments, including requirements for risk management, information disclosure, and investor rights protection," Madina Abylkassymova noted. "This will ensure the transparency and reliability of their circulation."
In addition, a significant portion of the bill’s amendments is aimed at modernizing the national financial infrastructure.
"The status of the digital tenge as a new form of national currency is being legislatively enshrined. Furthermore, the bill also provides for strengthening the regulation of payment organizations," the head of the ARDFM added.
As reported earlier, the bill "On banks and banking activities in the Republic of Kazakhstan," along with its accompanying amendments, is going to boost competition in Kazakhstan.