Kazakhstan's national bank is proposing to create a Bitcoin and crypto reserve that may include confiscated Bitcoin and crypto-assets and crypto mined by state-affiliated operations. National Bank Chair Timur Suleimenov has asserted that the national bank is working with lawmakers to establish necessary legal frameworks, including defining the reserve’s status and procedures for deposits and usage. The CCA (Central Counterparty Clearing Center) which helps provides a central counterparty in Kazakhstan’s financial markets and provides clearing and settlement services for transactions on the exchange and also acts as the buyer to every seller and the seller to every buyer to reduce counterparty risk. It's role according to the proposal, "Aims to facilitate the issuance and circulation of financial instruments through tokenization technologies and smart contracts, accelerate the safe launch of new products to the market, reduce transaction costs, and provide issuers with direct access to investors. It will allow to expand access to financing and make the capital market more inclusive for businesses."
Further down, it says:
In this regard, the launch of the CCA market is part of a systemic strategy not only for the technological modernization of the financial infrastructure, but also as a systematic measure against the backdrop of the growing public interest in unsecured cryptoassets. The main goal is to to create a safe, transparent and functional digital ecosystem that embraces the digital innovations of the crypto world without risks. Due to the growth of individual demand for cryptocurrency purchases and sales, as well as the outflow of citizens to unregulated foreign crypto markets, there is a need to create a legal and open channel for carrying out cryptocurrency exchange operations within the framework of national jurisdiction. The creation of such a channel will allow removing crypto transactions from the shadow circulation, ensuring their transparency, increasing the level of legal protection for crypto users, and strengthening control over their circulation.
This development follows up on President Kassym-Jomart Tokayev's move of wanting establish a "CryptoCity" which would act as a pilot zone where cryptocurrencies can be used to pay for goods and services. Furthermore, Kanysh Tuleushin, the country’s first vice minister of digital development, also said that Kazakhstan has the potential to become a leading crypto hub in Central Asia if regulatory restrictions are eased.
In May, Kazakhstan’s Minister of Digital Development Zhaslan Madiyev saying, “the government and regulators are currently working together to determine the most suitable location.” He envisions this city's adoption of crypto "...would be used as a means of payment — to pay in restaurants, cafes, buy real estate, make investments. I believe this could be a major breakthrough for the blockchain industry.“
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