El Salvador and Kazakhstan join forces to expand the use of bitcoin
Key facts:
-
They want to improve “cooperation, assistance and facilitation” of information exchange.
-
El Salvador has already become a reference for the regulation of the BTC ecosystem.
El Salvador, the first country in the world to give legal tender to bitcoin (BTC), and Kazakhstan, joined together to fine-tune the regulation of the BTC and cryptocurrency ecosystem.
The Astana Financial Services Authority (AFSA) and the National Commission for Digital Assets (CNAD) of El Salvador signed a memorandum of understanding to “enhance cooperation, mutual assistance and facilitation of information exchange within the financial markets.” digital assets”. With this they seek to expand the use of bitcoin in a regulated manner.
According to what AFSA indicated in a statement, a commitment was signed by both regulatory bodies “to strengthen their collaboration.” This, to “promote cross-border cooperation within the financial industry and facilitate the exchange of information on financial markets.”
This implies that AFSA and CNAD came together to, among other things, monitor and inform themselves about possible suspicious transactions carried out with digital assets between those nations or even in general, considering the reach that the Kazakh organization has.
According to Juan Carlos Reyes, the president of the CNAD, the agreement with the AFSA is an “important milestone” in a globalized and borderless economy. He also stated that That entity is “a pioneer in the digital asset regulatory industry.”
“The signing of this memorandum of understanding is an important step in strengthening global regulatory authorities (…) By creating agreements like this, we can ensure the adoption of best practices, identify bad actors and, most importantly , achieve financial transparency according to the global and national requirements of each country.”
Juan Carlos Reyes, the president of the CNAD.
AFSA is the independent regulator of the Astana International Financial Center (AIFC), where more than 2,700 companies from at least 78 countries around the world are registered.
That entity has already participated in the cryptocurrency ecosystem. In fact, he created a regulatory sandbox called FinTech Lab, with the aim of experimenting with digital asset projects safely. 18 entities participate in the initiative, the majority (14) being companies linked to the cryptoasset ecosystem.
The union of the Salvadoran and Kazakh authorities around the regulation of bitcoin and its ecosystem reinforces the role that the Latin American nation has won as a benchmark in the digital assets industry.
This has caused analysts and specialists to recommend the model followed by the government of Nayib Bukele in El Salvador for the regulation of the cryptocurrency sector, remembering that in that nation, CNAD has full jurisdiction.
That organization, for example, has a complete public registry of digital asset companies that operate in El Salvador. This allows the participants to be fully identified by the Bukele government.
As recognized by AFSA, CNAD’s regulatory approach, which is based on licensing and supervision, “has deterred fraudulent activities, safeguarding the interests of consumers and the integrity of the financial system.”
