Republic of Kazakhstan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Crypto Assets

This paper presents the Technical Note on Regulation and Supervision of Crypto Assets for the Republic of Kazakhstan Financial Sector Assessment Program. There are limited short-term financial stability implications from crypto assets in Kazakhstan, but this can change quickly. The ultimate goal for authorities should be to move toward a comprehensive regulatory framework for crypto assets, although this might not be a regulatory priority. Regardless of a prohibition or regulation, authorities should improve their domestic collaboration and international cooperation in relation to crypto assets. Authorities should improve user education through joint communication to markets and consumers. In the short term, authorities should work to ensure that users are informed of the trade-offs from using international crypto exchanges that are not registered, are operating illegally. This approach should be wide reaching through online media outlets to reach users most likely to engage with crypto assets. Over the long term, users should be able to consider trade-offs and make informed decisions on their preferred approach.