Latest Payments News: Regulatory Reforms Bring Kazakhstan Closer To Cryptocurrency Adoption

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Regulatory Reforms Bring Kazakhstan Closer To Cryptocurrency Adoption

The National Bank’s plan for widespread digital asset adoption could result in a comprehensive legal framework by early 2026, yet unanswered questions about cryptocurrency’s legal status suggest that significant work remains to be done.

Soon after announcing a plan to establish CryptoCity, a regulatory sandbox for testing and integrating cryptocurrencies into daily transactions, Kazakhstan has proposed further measures to embed digital assets into its financial system.

The Kazakhstan National Bank has drafted amendments to the Law On Payments and Payment Systems and the Law On Banks, introducing the concept of digital financial assets (DFAs) and laying the groundwork for the gradual expansion of regulated cryptocurrency use, local sources have told Vixio.

The document outlines three categories of DFAs: money-backed assets (primarily stablecoins), DFA derivatives and tokenised versions of traditional financial instruments.

The initiative would also allow banks to hold shares in DFA platform operators – legal entities authorised to issue DFAs and oversee their circulation, accounting, and storage – as well as to take stakes in DFA trading platforms.

At the same time, the National Bank confirmed that regulated cryptocurrency use will be channelled exclusively through licensed exchange providers, stressing that any activity outside these platforms will be prohibited.

By late 2025, the National Bank aims to approve the first stablecoins and support the launch of Kazakhstan’s inaugural cryptocurrency payment cards.

“The Kazakhstan Association of Payment Organisations welcomes the current trends of the cryptocurrency regulation,” said Bayangul Akimzhanova, chair of the Association of Payment Organisations, noting that its members had participated in several National Bank meetings on the issue.

According to Akimzhanova, regulators have conducted extensive research on current trends in the cryptocurrency market.

Currently, citizens may legally trade cryptocurrencies only through exchanges licensed by the Astana International Financial Centre. Yet researchers found that just 5% comply, with the vast majority using unlicensed platforms.

Singapore Weighs Verification Of Payee Rules

The Monetary Authority of Singapore (MAS) is exploring account name–number matching to reduce transfer errors and fraud, building on global experience and preparing for alignment with evolving international standards.

Such verification of payee-style rules would require banks to match account names with account numbers before processing transfers.

Responding to a parliamentary question, deputy prime minister and Monetary Authority of Singapore (MAS) chair Gan Kim Yong said the regulator has been reviewing other countries’ experiences with account name–number matching. He added that MAS is working with the banking industry to assess possible approaches and solutions.

At present, banks in Singapore do not check whether an account name corresponds to an account number before processing transfers. Customers who make an error must approach their bank, which then liaises with the recipient’s bank to contact the unintended recipient and seek a refund.

“There is clear guidance and protocols in place to guide banks’ actions in such erroneous transfer situations,” Kim Yong said.

“We urge consumers to be vigilant against demands for fund transfers from any person. Particularly, government officials will never ask members of the public to transfer money, disclose banking log-in details, install mobile apps from unofficial app stores or transfer calls to the Police,” he warned.

“When unsure, do not proceed. To prevent erroneous transfers, consumers can adopt measures such as confirming the account number or Paynow details of the intended recipient before performing the transfer.”

MEPs’ Question Aims To Force The European Commission To Address Debanking

The call for stronger safeguards underlines growing pressure on regulators to define banks’ obligations, protect access rights and prevent the misuse of reputational risk.

In a written question to the Commission, right-wing MEPs Fernand Kartheiser, Stephen Nikola Bartulica and Elisabeth Dieringer criticised what they view as a rise in debanking practices by banks and payment firms across the EU.

The three MEPs, from Luxembourg, Croatia, and Austria, described debanking as a “recent phenomenon” that is affecting both individuals and organisations in the EU, “often without explanation or avenue for appeal.”

The lawmakers argued that account closures can have “highly disruptive” consequences for livelihoods and families dependent on the affected accounts.

They asked the Commission whether it is aware of the trend and if it has engaged with stakeholders to develop tools “that safeguard customers’ banking rights from political repression.”

They also raised the possibility of stricter rules on arbitrary account closures, such as requiring prior judicial authorisation, ensuring transparency and setting out clear procedures for reporting, communication and appeals.

The MEPs expressed concern over European banks’ reliance on broad concepts such as “reputational risk” when deciding to terminate services. They argued that such terms should be more precisely defined to prevent politicisation and to ensure that politically exposed persons (PEPs) and organisations are not unfairly targeted.

Latest Phase Of Innovation Underlines EU’s Commitment To Digital Euro

The European Central Bank (ECB) expects the digital euro to drive innovation in payments and improve financial inclusion as it enters the next phase of experimentation.

After completing the first round of tests on its digital euro innovation platform, the ECB has announced a second wave of experimentation with the EU’s potential central bank digital currency (CBDC) for 2026.

This comes after a period of positive developments for the digital euro solution. In recent weeks, ECB executive board member Piero Cipollone suggested that a launch could be possible by the middle of 2029, EU finance ministers agreed a roadmap for introducing a digital euro, and a survey by the EU’s consumer organisation, BEUC, found that consumers expect the digital euro to be “safe and reliable”.

Nearly 70 banks, fintechs, start-ups, merchants, academics and other stakeholders took part in the ECB platform’s inaugural phase, launched in October 2024 to explore how a central bank digital currency might work in practice.

Participants joined two tracks: “visionaries”, which looked at long-term possibilities, and “pioneers”, which ran technical trials in a simulated environment.

Both groups stressed the importance of harmonised standards, a shared infrastructure and close cooperation with market participants to make the digital euro scalable and reliable across the euro area.

“We asked market participants to imagine the many opportunities a digital euro could offer consumers and merchants. Their enthusiastic response shows the immense scope for the digital euro to play a transformative role in the European payments landscape,” said Cipollone.

“By fostering collaboration and providing a harmonised infrastructure, the digital euro can enhance the payment experience for Europeans, while enabling market participants to develop innovative services and business models.”

New Malta Dear CEO Letter Notes Progress On DORA Compliance But Flags Gaps

The Malta Financial Services Authority (MFSA) has identified meaningful progress in operational resilience compliance, but warns that shortcomings in testing, incident management and outsourcing oversight could undermine sector stability.

The MFSA has become one of the first national regulators in the EU to share its findings on progress in compliance with the Digital Operational Resilience Act (DORA) framework.

Its most recent communication reveals some of the key strengths and weaknesses of firms, including e-money and payment institutions, as they implement the DORA rulebook.

According to the MFSA, nearly 90 percent of the DORA-derived assessments have been fully or at least partially achieved.

It said this represents “meaningful progress” towards meeting regulatory expectations, especially in the four priority areas it examined last year: DORA preparedness, risk management and compliance functions, incident management and third-party provider oversight.

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