Kazakhstan and UAE Central Banks Sign MoU to Collaborate on VDA Regulations 4w6f38 CBDCs

Officials from both agencies discussed digital asset regulation and CBDC applications. k3v6k

Written by Siddharth Suvarna | Updated: 4 April 2025 15:56 IST

Kazakhstan and UAE Central Banks Sign MoU to Collaborate on VDA Regulations, CBDCs

Photo Credit: X/ @kazembassyinuae 37q1i

Kazakhstan plans a broader rollout of its CBDC, the digital Tenge, this year

Highlights

Kazakhstan is working on understanding Web3 payments
It will work with UAE authorities on exploring CBDC use cases
Kazakhstan has mandated a licencing regime for Web3 firms

ment

Kazakhstan, aiming to advance trials of its digital Tenge CBDC this year, has sought the UAE's expertise to explore the Web3 sector. In a recent development, the National Bank of Kazakhstan signed an MoU with the Central Bank of the UAE (CBUAE) to collaborate on fintech, cybersecurity, and CBDCs. Kazakhstan also intends to leverage the UAE's experience in regulating virtual digital assets (VDAs) to shape its own regulatory framework.

A delegation from Kazakstan's National Bank visited the UAE last week to meet with officials from the CBUAE. During the meeting, officials from both agencies discussed topics like digital assets regulation and CBDC uses, the National Bank said in a statement.

Key Details About the Meetings

During their UAE visit, officials from the National Bank of Kazakhstan met with leaders from the Abu Dhabi Global Market (ADGM) and the Dubai Financial Centre Authority (DFSA). Their focus was to learn how UAE's financial hubs leverage advanced technologies for payments and transactions. Kazakhstan is evaluating whether similar strategies can be implemented within its crypto-friendly Astana International Financial Centre (AIFC).

UAE Government, Shiba Inu Partner to Bring Web3 to Public Sector Services

These financial centres of Dubai and Abu Dhabi have made strides in exploring VDA use cases in recent years. Last month, the DFSA authorised Ripple to offer crypto-based payment services to companies operating from the Dubai International Financial Centre (DIFC).

The Abu Dhabi Global Market (ADGM), meanwhile, has also been working with Binance to offer crypto custody and other related services in the financial centre that houses over 2,000 global companies.

Kazakhstan authorities could reportedly use details from UAE's case studies to improve its financial market infrastructure and experiment in blockchain-based cross-border trading.

India, Qatar's FIUs Partner Against Money Laundering Activities via VDAs

Elaborating further, the National Bank of Kazakhstan said, "an exchange of experiences on digital financial assets regulation and the development of blockchain technologies took place with the management of the Virtual Assets Regulatory Authority (VARA)."

While most countries like India and the US among others are still working to regulate their Web3 sectors -- the UAE has already established itself as a Web3 hub in recent years. Not only Kazakhstan, but other nations like the US are also turning to the UAE for guidance on VDA regulations.

Kazakstan's History with Web3

In 2022, Bitcoin mining had become a popular business activity in Kazakhstan. However, owing to power outages and excessive electricity consumption by crypto miners, the government cracked down on illegal mining operations. To curb such activities, the government also levied a tax hike on electricity prices.

In the same year, Binance also established an office in Kazakhstan's own financial centre, the AIFC. At the time, Binance said it would help the country develop Web3 regulations.

In 2023, Kazakhstan formalised certain rules to govern the digital assets space. These included a licencing requirement for crypto businesses as well as compliance mandate on anti-money laundering and counter-terror financial measures.

Authorities in Kazakhstan plans, the CBDC is expected to see a wider rollout by the end of this year.

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Digital Assets

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More