Kazakhstan banks will give the opportunity to its citizens to invest in Bitcoins, sell cryptocurrency on the exchange market and transfer their income into money. Soon there will be a possibility of opening their cryptocurrency bank accounts.
As governments around the world are wrestling with the crypto industry, Kazakhstan has become one of the first to attempt a forced centralization of cryptocurrencies.
The Kazakhstan Association of Blockchain and Data Center Industries – an industry-body for crypto miners – revealed that active crypto exchanges registered in the country will soon be required to start working with local banks to facilitate Kazakh customer’s access to cryptocurrency, namely Bitcoin (BTC).
According to the Kazakhstan Association of the Blockchain and Data Center Industry, crypto exchanges that are registered under the Astana International Financial Center (AIFC) will soon be able to work with local banks. This will allow their clients to legally and openly use cryptocurrency.
An investor must have a legal account at one of the Astana International Financial Center (AIFC) registered banks in order to be able to trade on the crypto exchange. The account will allow the investor to send money, purchase Bitcoins and perform other operations on the exchange market. The investor can also transfer the income to his account as ordinary money. The bank will acts as an intermediary for transactions.
The pilot project will enable Kazakhstan government to evaluate the benefits and risks of digital assets, which is expected to last for one year. Market experts also believe that although cryptocurrency is not currently allowed in Kazakhstan, the ban will be lifted or canceled completely after the pilot project is completed.
Kazakhstan banks seize opportunities provided by bitcoin mining
Experts believe there are many reasons why cryptocurrency is being recognized in Kazakhstan. As China’s share of global bitcoin mining is falling, Kazakhstan’s share in mining rose sixfold, making it the third-largest cryptocurrency producer in the world. Today, Kazakhstan holds six to eight percent (or more) of the global mining volume.
The Republic of Kazakhstan is increasingly attracting the attention of global cryptocurrency miners due to the ongoing crackdown on crypto mining in China. Some of China’s largest crypto mining companies, Bitmain and Canaan, have started working with entities in Kazakhstan to manage mining facilities and services in the country.
Government Relations Coordinator of Kazakhstan Association of the Blockchain and Data Center Industry, Sergei Putra stated:
“The global premise is that crypto turnover is a fairly large volume of finance. It is billions of dollars of daily turnover around the world. And even if Kazakhstan takes a fraction of a percent, even one percent of this turnover, this is serious money that will come to Kazakhstan in the form of investments and that will remain here in the form of taxes, jobs and salaries. This is a very large industry, which Kazakhstan is still bypassing,”Sergei Putra
Fraud is another reason to introduce secure cryptocurrency exchange. In the past Kazakhstani investors had purchased many fake cryptocurrency instead of real currency and ended up without any money or coins.
In a nut-shell, Kazakhstan banks are moving back into a third-party verification role by being antithesis to the original Satoshi White Paper, and completely by passing Bitcoin’s double-spending problem solution.