Kazakhstan and UAE strengthen digital asset ties

Kazakhstan and the United Arab Emirates (UAE) have intensified their cooperation in the digital asset sector through a recent delegation visit from March 26 to 27.

The trip involved representatives from Kazakhstan’s National Bank and the Agency for Regulation and Development of Financial Markets (ARDFM), who met with key UAE financial institutions and regulatory bodies to discuss digital asset regulation, blockchain technology, and central bank digital currencies (CBDCs).

A Memorandum of Understanding (MoU) was signed with the Central Bank of the UAE to exchange best practices in fintech, cybersecurity, and CBDC development.

Kazakhstan is planning to launch its Digital Tenge CBDC by 2025, integrating it with global payment platforms.

The UAE, meanwhile, is set to introduce its digital dirham CBDC later in 2025.

The collaboration also explored integrating Kazakhstani exchanges, such as the Kazakhstan Stock Exchange (KASE) and the Astana International Financial Centre (AIFC), with the UAE’s Tabadul digital exchange.

This aims to enhance stock market infrastructure and facilitate cross-border trading using blockchain technology.

Meetings with the UAE Securities and Commodities Authority and the Virtual Assets Regulatory Authority focused on developing bespoke regulations for digital assets.

Discussions with Abu Dhabi Global Market (ADGM) and Dubai Financial Centre Authority (DFCA) centered on regulatory approaches for transactions and settlements within these financial centers.

Additionally, the Kazakh delegation engaged with Mubadala Investment Holding and First Abu Dhabi Bank to expand investment partnerships.

They also met with technology firms like BCG and Microsoft to develop AI infrastructure in Kazakhstan’s financial market.

This cooperation reflects Kazakhstan’s efforts to strengthen its digital financial ecosystem and enhance its position as a major cryptocurrency mining hub.

The country currently accounts for about 6.17% of global cryptocurrency mining output.

By collaborating with the UAE, Kazakhstan aims to leverage expertise in digital banking and AI to bolster its financial sector’s resilience and innovation.