ASTANA, Kazakhstan, November 5. Kazakhstan is set to formalize the legal status of its digital currency, the digital tenge, following the first reading approval of the Law on Banks and Banking Activities by the Mazhilis, the lower house of parliament, Trend reports via the Kazakh parliament.
The draft law, which also includes amendments on financial market regulation and development, establishes the legal status of the digital tenge and introduces a framework for regulating digital financial assets (DFAs). Under the new legislation, three types of DFAs will be recognized: digital assets representing claims on money (stablecoins), digital financial assets backed by underlying assets, and financial instruments issued in digital form.
In addition, the approved bill paves the way for the development of fintech and the support of innovations. Banks will be allowed to invest in emerging fintech companies operating in areas such as digital technologies, e-commerce, cybersecurity, biometrics, artificial intelligence, and telecommunications.
Digital financial assets (DFAs) are digital representations of value utilized as a medium of exchange, store of value, or unit of account, operating on digital ledgers such as blockchain. They are distinct from the broader category of "digital assets," which encompasses any form of digital data, such as photographs or papers. Instances of DFAs encompass cryptocurrencies, digital equities, digital bonds, and tokens signifying ownership of tangible assets.
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