Fintech companies in Kazakhstan are urging greater scrutiny of a proposed law intended to regulate betting transactions in the country.

The submitted legislation, currently in its final reading, would form a monopoly entity, the Unified Accounting System (UAS), the firms said in a joint press release. The UAS would be used to determine market participants, process payments, maintain a single “electronic wallet” and make settlements with clients. A critical concern is that it could charge up to 1.5% in commissions on all market transactions, within a market where regulated transactions exceed KZT1.2tn ($2.6bn) annually.

Irina Davidenko, a spokesperson for Kazakhstan’s payments industry, commented: “The proposed legislation would be a step backwards for Kazakhstan, harming competition in the country’s vital payments sector and signaling to the outside world that necessary business reform is being driven by shadowy interests, rather than what’s right for industries and consumers.”

The proposal, partly billed as a public health move against problem gambling, resembles a previous initiative, the Betting Accounting Centre (BAC). It was shelved in 2021 after a scandal involving a deputy minister who was dismissed for accepting bribes from BAC lobbyists, according to the press release.

The lack of transparency on the UAS structure and ownership as outlined in the legislation is another aspect of the change that is seen by critics as troubling.

The reintroduction of a UAS model occurred as late as the second reading of the legislation. If passed by parliament, it will become law without the comprehensive impact analysis and scrutiny typical for such significant regulatory change.

Observers argue the new regulation duplicates existing regulatory functions already managed by Kazakh state bodies and was proposed without the cooperation of the National Bank of Kazakhstan. The central bank has previously developed its own reform proposal that avoids introducing a monopolistic entity.

Opponents further contend that the regulation could cause “significant economic damage”. National Bank of Kazakhstan representatives and the payments industry have sounded alarm bells, but the issues have not been adequately addressed, the press release added.

The concerned fintech and payment companies want the legislation to be reconsidered. They are advocating for it to be sent back to the lower house of the legislature for a full regulatory impact analysis and thorough examination to ensure that it does not adversely affect industry or the economy.

Ilya Efimenko, commercial director of the payment organisation PayDala, said: “I appeal to the Senators, who need to know the true purpose of why the UAS has made a comeback in the bill.

“This is a re-emergence of the ‘Betting Accounting Center’ (BAC), a strikingly similar entity that was withdrawn before, and behind which, as the deputy from the Amanat party Elnur Beisenbayev said, are the powerful forces of ‘Old Kazakhstan.’

“Before our eyes, a monopolist, a private operator, is being created. The emergence of monopolies such as the UAS threatens the principles of a Fair Kazakhstan. Now everything is being done to break the financial system of Kazakhstan, recognized by experts as one of the best in Central Asia.”

T1Soft has been granted a Software Supplier Licence from the Isle of Man, marking a significant step in broadening the reach of its online gambling platform, content, and support services across global markets.

Granted by the Isle of Man Gambling Supervision Commission with the support of Global Gaming Solutions, this licence is a testament to T1Soft’s commitment to upholding a high standard of integrity and responsibility within its operations. This licence establishes T1Soft as a dependable provider for operators looking to enhance their gaming platforms.

A spokesperson for T1Soft, said: “We are thrilled to announce that T1soft has been granted the Software Supplier License. This significant milestone allows us to expand our services and enhance our offerings globally, further establishing our commitment to delivering high-quality and secure software solutions. We are proud to meet the stringent standards required for this license and are excited about the opportunities it opens up for us.”

Mark O’Neill, Director of Global Gaming Solutions said “We are delighted to have supported T1Soft throughout the Isle of Man licensing process. The Isle of Man Software Supplier Licence is a prestigious licence and will enable the T1Soft team to continue achieving key milestones on their roadmap and we are excited to be working with them every step of the way.

The journey of T1Soft is a testament to how the public and private sector can work in partnership to deliver results for international clientele looking to establish operations on the Isle of Man”.

Tara Leneghan, Strategic Partnership Manager at Digital Isle of Man added “We are proud to have supported the T1Soft team with establishing their operations on the Isle of Man. T1Soft’s recent acquisition of a Software Supplier License showcases their commitment to high standards and delivering excellence in the provision of gambling products and services and we look forward to continuing our partnership moving forwards.

JCM Global has announced that several of its banknote handling devices have successfully passed the rigorous testing conducted by the Bank of England (BoE). The devices that passed include:

UBA PRO

UBA PRO RTQ

MRX

iVIZION

EBA-40

The BoE’s test is comprehensive, consisting of two main parts. First, it evaluates whether genuine banknotes are accurately accepted by the devices. Second, it tests the devices’ ability to reject counterfeit banknotes, including those inserted in all four possible orientations. In addition to counterfeits commonly found in the market, the BoE also uses specially prepared Machine Artificial Counterfeits (MAC notes), which must not be accepted by the devices. The testing criteria have been further tightened as of early 2024, making this achievement even more significant.

Moreover, JCM’s devices have been tested with banknotes and counterfeit money from other UK banks such as the Bank of Ireland and the Bank of Scotland. Its devices are already equipped to recognize the new “King Charles” banknotes, even though these are not yet part of the official test.

This accomplishment underscores JCM’s commitment to providing high-quality, reliable banknote handling solutions. Their continued success in passing these stringent tests reflects their dedication to excellence and proactive approach to evolving market requirements.