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- Kazakhstani banks will be able to create accounts at the Astana International Financial Center for bitcoin exchanges
- To trade on any of the exchanges, potential crypto investors will need to have an account with a partnering banking institution
- The government of Nur-Sultan intends to use the initiative to conduct a risk and benefit analysis of digital assets
Companies that provide digital asset trading services will be authorized to register bank accounts in Kazakhstan, according to local media, citing the country’s crypto industry group. Kazakhs should be able to invest in cryptocurrencies lawfully and cash out their winnings through the service.
Kazakhstani cryptocurrency exchanges will be able to use banking services
Kazakhstan’s National Association of Blockchain and Data Center Industry declared, as quoted by local news portal Habar 24, that Kazakh banks will be allowed to create accounts for cryptocurrency exchanges registered at the Astana International Financial Center (AIFC). The move is part of a one-year pilot initiative involving second-tier banks.
To trade on any of the exchanges, potential crypto investors will need to have an account with a partnering banking institution. They would be able to transfer fiat money, buy digital coins, and perform a variety of other transactions on Kazakhstan’s crypto trading market as a result of this. Profitable investment income can subsequently be re-deposited into personal accounts.
The initiative will be used by the administration of Nur-Sultan to evaluate the risks and advantages of digital assets. Cryptocurrency exchanges are still outlawed in the Central Asian country, but industry observers believe that restrictions will be eased or perhaps eliminated once the project is completed.
Kazakhstan’s Banks Will Benefit From Crypto Transactions
Experts point to a number of reasons why the government policy on decentralized digital money should be revised. The worldwide crypto economy, according to Sergey Putra, who manages ties with the government at Kazakhstan’s blockchain organization, represents a fairly big amount of finance, with billions of dollars in daily turnover.
Even if Kazakhstan only gets a fraction of a percent of this turnover, it is significant money that will come to Kazakhstan in the form of investments and will stay in the form of taxes, jobs, and salaries. This is a massive industry that Kazakhstan continues to ignore.
Kazakhstan has become an attraction for cryptocurrency miners in recent years, especially given China’s growing crackdown. The country has grown in prominence as a coin minting destination, accounting for 6–8% of global mining volume, thanks to low-cost electricity and a generally favorable attitude toward the business. Processing financial transactions for the burgeoning business would assist the local banking system.
Finally, authorities expect that the project would aid in the prevention of bitcoin fraud by facilitating safe cryptocurrency exchange for local inhabitants. The number of cases of Kazakhs being duped into bogus investment schemes and losing crypto or fiat assets has been rising, according to the research.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
