How will cryptocurrencies work in AIFC
ASTANA. KAZINFORM The Astana International Financial Center (AIFC) is working on the development of legislation regulating cryptocurrency transactions, Chief Executive Officer of the Astana Financial Services Authority Steven Glynn said in his interview with Kazinform.
According to him, currently, the AFSA is considering the development of a legislation, which would provide an effective, safe and innovative regulatory framework for cryptocurrencies. He noted that the legislation would need to consolidate the legal status of cryptocurrencies, procedures and requirements for companies that want to raise funds by issuing tokens through ICO, as well as regulatory requirements for crypto-exchanges and financial institutions dealing with cryptocurrencies.
There are around 900 cryptocurrencies (cryptocurrency assets). Their market capitalization is around $130 billion. And today, ICO's became the dominant form of fundraising for startups.
Steven Glynn also stressed that the regulation will be aimed at the creation of a safe environment in which financial services, including financial technologies, will flourish. AFSA is currently developing financial regulations of solutions that will allow to encourage the development of innovation and to protect consumers.
According to him, AFSA has already developed rules in accordance with which FinTech companies will be able to apply for a permit for testing in a real environment with regulatory bodies. If solutions are proven effective, they will be able to apply to AFSA for a license to provide its technology's financial services in a broader market.
The AFSA is an independent financial and ancillary services regulator at the AIFC. It will manage a wide range of financial services, including wealth management for individuals, asset management, capital markets, insurance, securities, as well as new financial technologies such as cryptocurrencies, which are currently beyond the scope of the generally accepted regulatory framework.