The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an update on the Senate’s consideration of draft legislation that would replace the current Banking and Banking Activity framework and amend other laws on financial market regulation and development. Prepared jointly with the National Bank of Kazakhstan, the package is positioned as a comprehensive reform covering bank licensing, consumer protection, crisis management for non-viable banks, corporate governance, and regulation of digital assets including recognition of the digital tenge’s legal status. The draft new banking law would introduce a two-tier licensing model with “basic” and “universal” licences, with the basic licence permitting a limited set of operations and reduced regulatory requirements. Universal banks would be able to offer Islamic banking services through “Islamic windows” via dedicated units rather than separate Islamic banks. Consumer protection measures include conduct supervision, creation of a single financial ombudsman office spanning banking, insurance and microfinance, and a three-level pre-trial dispute resolution system. For insolvent banks, the draft sets out a mechanism built around three sequential regimes (enhanced supervision, financial stability restoration, and insolvency resolution), including loss-absorbing capacity requirements for systemically important banks via conversion of liabilities into capital, and restricting state support to a last-resort, temporary and remunerated capital entry followed by sale to an investor. Corporate governance changes would strengthen the independent director framework and add requirements on board independence and a maximum nine-year tenure. The fintech and digital asset provisions would permit domestic circulation of digital financial assets and define three categories, including stablecoins and other digital assets backed by financial instruments, property rights, commodities or other property, as well as financial instruments issued in electronic-digital form on digital platforms.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-12-25
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan details draft banking law introducing dual licensing, new resolution regimes and digital asset rules
The Agency for Regulation and Development of the Financial Market of Kazakhstan, with the National Bank, proposes reforms to replace the current Banking framework. The draft introduces a two-tier bank licensing model, enhances consumer protection, and establishes a crisis management mechanism for non-viable banks. It also addresses corporate governance and regulates digital assets, including the legal status of the digital tenge.