Stephanie Douse 
Kazakhstan is set to test a pilot project for the introduction and operation of crypto exchanges in Astana International Financial Centre (AIFC).
The AIFC was established in 2018 with the goal of developing Kazakhstan’s non-banking financial sector and positioning the country as a financial centre for Central Asia. There are 1,046 companies registered there, according to its website.
Crypto exchanges will operate in the AIFC as part of the pilot, in collaboration with local banks and government organizations.
On Friday, the Kazakhstan government declared that existing legislation would be amended to prevent financial services from being used to support cryptocurrency activity.
The modifications will permit such activity, subject to the requisite due diligence on the source of funds, the nature of AIFC participants’ operations, and collaboration with relevant financial authorities, among other things.
Following the crackdown in China, several miners transferred their operations to Kazakhstan, making it a country of significant relevance for the crypto business.
However, the relationship between mining companies and their new home got tense later in 2021, when the government imposed restrictions on the newcomers due to acute electricity shortages. As a result of the government’s crackdown last month, 106 miners were compelled to halt operations.