Blockchain, digital assets, and NFTs – what was discussed at the Digital Business Day forum

On April 26, the Digital Business Day forum took place in Nur-Sultan, where technology experts shared their experience, insights, and discussed the latest trends in the IT sector. The Tech editorial team attended the event in person – here is a report on the most interesting aspects of the forum.

On Digitalization

As part of a panel session, representatives from the Center for Information Resources and Technologies (MCRIAP), JSC “NIT”, NPP Atameken, and the Kazakhstan Blockchain Technologies Association discussed issues related to digitalization. Speakers noted that the fintech sector has made a significant contribution to the popularization of financial services, the development of cybersecurity, and the digitalization of government services using biometrics.

They also discussed the need for regulation of data used for scoring – Bolat Bashayev, representative of NPP “Atameken,” stated that approximately 40% of databases in the public sector are “corrupted” – not all data is reliable. Additionally, the urgent need for educational content about IT in the Kazakh language was raised.

On Digital Assets

CEO of the “Center for Digital Law,” Yermek Rustembek-uly, spoke about the potential of the crypto market in Kazakhstan:

– More than 324,000 participants, including investors, traders, miners, freelancers, and small businesses – which accounts for 1.73%.*

– Crypto exchanges can operate within the rules of the International Financial Center “Astana” (IFC Astana) – this opportunity is also available to other companies involved with digital assets.

– Thanks to mining, the country earned $190 million.*

– Tax revenue from cryptocurrency turnover could reach 26.5 billion tenge per year.

*According to the Center for Digital Law

The speaker also emphasized the need for licensing and taxation of crypto exchanges so that market participants can conduct their activities smoothly.

Digital Tenge, inDriver’s Transformation, and Big Data

Individual speaker presentations were also part of the forum. Among them, sessions worth highlighting included:

– Results of the pilot project for the digital tenge (DT). Joint work with market participants and international organizations is planned for 2022. A decision on the necessity of implementing the DT is expected in December.

– The development process within inDriver. Out of 2,000 employees, about 300–350 are involved in development, working in 15 product teams and 18 platform teams according to product horizontal and vertical principles, as well as a technological platform.

– CEO of Geometry, Merei Nursultanov, spoke about the specifics of working on various Big Data projects – for example, complex analytics and data processing are carried out by companies with advanced technologies like Kaspi.kz, while government projects require medium-level analytics but complex processing due to the large number of data sources.

Development of Startup Culture

Representatives of venture funds – Umay Ventures Fund, MOST Ventures, My Ventures, and others – spoke during this block. They explained which projects they are ready to invest in – for instance, MOST Ventures is prepared to support startups at the Seed stage, while Umay Angels Club supports Pre-seed startups.

Startups presented their projects in the fields of GPS navigation, VR, HealthTech, the entertainment industry, NFT, and others.

NFT Industry

Several presentations at the forum were dedicated to the NFT industry. Speakers detailed blockchain technology, marketplaces, crypto platforms, and trends. An NFT exhibition featuring works by Kazakh photographers, artists, and 3D animators was also presented. According to the exhibition curator Kasymkhan Zhapenov, some of the exhibition projects were sold for approximately $4,000.

Mining and Crypto Exchanges

On the sidelines of the forum, The Tech editorial team discussed issues related to the launch of crypto exchanges and mining in Kazakhstan with Sapar Akhmetov, President of the Kazakhstan Blockchain Technologies Association.

About Crypto Exchanges

A platform will be created in Kazakhstan based on the International Financial Center “Astana” (IFC Astana), which will establish conditions and rules for the operation of crypto exchanges and trading in digital assets. Currently, this issue is under negotiation between IFC Astana, the National Bank, and the Financial Monitoring Agency regarding regulation.

Given the advantages of English law in IFC Astana, this should become an international hub with reliable protection of digital assets, transparent operations, and participation from foreign investors and crypto exchanges.

About Floating Taxation

Our association is not against the introduction of such a system. If we link taxation to the cost of cryptocurrencies, we must base it on the quotes of a specific platform – either Coinbase or Binance, for example. However, we cannot rely on quotes from foreign platforms. After the launch of exchanges in Kazakhstan, we will have the opportunity to link taxation to quotes on exchanges registered in IFC Astana.

About Power Outage Issues

The state should create conditions for investors willing to finance the energy sector – currently, legislation is hindering the development of investment projects in energy.

There is fragmentation regarding digital mining. Take, for example, the national electricity operator KEGOC – it reports directly to “Samruk-Kazyna,” not the Ministry of Energy. It is this fund that has the “levers” for construction, modernization, and distribution of power grids. If these capabilities were fully under the Ministry of Energy – KEGOC would need to be transferred to the ministry, and then these issues would be resolved faster and more efficiently.

About Mining Companies

We can say that more than half of the mining farms have left Kazakhstan. However, we do not have a complete picture, as not all miners are members of our association. There are only three associations in the country. At the same time, there are “gray” miners who are not registered anywhere.

The legalization process is underway at the Ministry of Digital Development. We need to formulate issues related to licensing, infrastructure requirements, technical specifications, and power supply. All of this needs to be regulated, but today we do not see concrete steps. Perhaps there are many other issues on the government’s agenda.