Kazakhstan is moving to strengthen the accountability of commodity exchanges and the entities that participate in them. The decision came from Prime Minister Alikhan Smailov, who ordered amendments to the Administrative Offenses Code aimed at tightening enforcement around these markets. The notice was issued through official channels of the Kazakh government.
During a government meeting, the prime minister noted that legislation governing commodity exchanges has undergone two major updates in the past five years, yet the framework still falls short of delivering full market functionality. The discussion underscored a need for clearer rules and stronger oversight to ensure that exchange activities align with national economic goals and regulatory standards.
One of the central issues raised concerns the use of commodity exchanges by subsoil users to fulfill internal needs. In addition, Smailov pointed out that exchanges are currently classified as micro businesses, which, by virtue of their classification, can incur minimal tax obligations and face limited audit scrutiny. This regulatory gap, according to the prime minister, undermines market integrity and clarity for investors and participants alike.
To address these concerns, Smailov instructed senior officials to finalize a government decision within two days on a draft resolution related to foreign exchange trading issues. He also called for measures to bolster the information security of commodity exchange software, ensuring alignment with international standards. A comprehensive package of changes should be prepared, with the aim of reinforcing the Code of Administrative Offenses to increase the liability of exchanges and their participants and to reduce opportunities for evasion or misuse of the system.
In related developments, President Kassym-Jomart Tokayev recently announced another leadership adjustment, appointing Asan Zhusupov as commander-in-chief of the ground forces. The president has also emphasized Kazakhstan’s intent to strengthen comprehensive cooperation with the Russian Federation, signaling a broader regional strategy that could influence regulatory approaches to commodity markets and security concerns in the near term.