Kazakhstan could soon see wider use of cryptocurrency payments, as the country works to introduce regulation for digital financial assets (DFAs) and develop a new segment of its financial market.

The head of the National Bank of Kazakhstan, Timur Suleimenov, said the initiative could open the door to an entirely new financial industry, The Caspian Post reports via Kazakh media.

Traditionally, the financial system has been built around banks, insurance companies, loans, and bonds, Suleimenov noted. However, technological progress is creating new financial tools such as tokenized assets, digital bonds, and crypto-fiat payment channels.

“In essence, a completely new sector of the financial market is emerging,” he said.

Suleimenov explained that digital financial assets could democratize access to financing. For example, property developers could tokenize real estate and sell shares to investors in the form of digital tokens, creating competition for traditional bank financing.

The regulator is proposing to legalize and regulate cryptocurrency circulation through a licensing system for crypto exchanges. These platforms would be required to comply with anti-money laundering rules, tax regulations, and banking legislation.

The central bank chief said that two banks in Kazakhstan have already launched crypto-fiat cards, while two more financial institutions are preparing similar products.

These initiatives are currently operating in a regulatory sandbox, but officials say they are expected to gradually move into the full legal framework, making crypto-related services part of everyday financial life.

The National Bank of Kazakhstan believes that expanding the digital financial assets market will boost the country’s fintech sector and strengthen the overall economy.