The Astana Financial Services Authority (AFSA) in Kazakhstan is piloting stablecoin payments for regulatory fees, with Bybit as the first participant, signaling growing acceptance of digital assets in regulatory frameworks.

Executive Summary

The Astana Financial Services Authority (AFSA) in Kazakhstan has launched a pilot project allowing firms to pay regulatory fees using USD-pegged stablecoins. Bybit is the first participant in this initiative, which aims to modernize financial infrastructure and promote digital finance within the Astana International Financial Centre (AIFC).

The Event in Detail

Announced during Astana Finance Days, the pilot program allows licensed digital asset service providers to act as agents for settling regulatory fees via stablecoins like Tether (USDT) and Circle's USDC. The initiative shifts regulatory payments from traditional bank transfers to blockchain-based solutions, promising speed, efficiency, and transparency. Only firms licensed to offer money services related to digital assets or operate trading facilities within the AIFC are eligible to participate.

The program operates under a multilateral memorandum of understanding (MMoU). Bybit Kazakhstan will provide AFSA with a customized Bybit QR Pay solution and a dedicated stablecoin wallet for invoicing.

"This initiative represents a first-of-its-kind regulatory framework for payments in stablecoins in the region," said AFSA CEO Evgeniya Bogdanova.

Market Implications

This pilot could lead to increased adoption of stablecoins for payments and broader integration of digital assets into traditional financial systems. Other jurisdictions may follow suit, creating a more favorable regulatory environment for stablecoins. The move aligns with Kazakhstan's broader strategy to modernize its financial systems and foster a favorable environment for digital asset businesses.

Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA) has also implemented new amendments to its Digital Asset Regulatory Framework, streamlining how Virtual Assets (VAs) are approved for use.

Expert Commentary

Bybit COO Mazurka Zeng stated that the exchange is “proud to contribute to expanding the payment ecosystem at the beating heart of financial innovation in Kazakhstan, the AIFC.”

Broader Context

In January 2024, AFSA introduced a Stablecoin Framework and later issued the country's first fiat-backed stablecoin license to AnchorX.KZ Limited. Kazakhstan's central bank is also pursuing its own digital currency initiative, with the digital tenge pilot already underway. The full rollout of the digital tenge is expected in 2025.

This initiative follows similar steps taken by other financial hubs like Abu Dhabi Global Market (ADGM), which is also refining its digital asset regulations to streamline virtual asset approvals and adapt to rising institutional interest in digital finance.