Kazakhstan will soon allow cryptocurrency-related bank accounts to customers. Astana Times, the national news agency of Kazakhstan, reports that citizens of Kazakhstan will soon be able to buy bitcoins, convert their income into cash and sell crypto on an exchange market.
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 AIFC-registered banks in order to be able to trade on the crypto exchange. The account will allow the investor to send money, buy BTC and crypto, and perform other operations on the exchange market.
The investor can also transfer the income to his account as ordinary money. The bank will act as an intermediary for transactions.
The pilot project will enable the Kazakhstan government to evaluate the benefits and risks of digital assets, which are expected to last for one year. Market experts believe that although cryptocurrency is not currently allowed in Kazakhstan, the ban will be lifted or canceled completely after the pilot project completion.
Experts believe there are many reasons why cryptocurrency is being recognized in Kazakhstan. As China’s share of global bitcoin mining falls, t his dramatic shift has seen Kazakhstan’s share in mining rise 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.
Government Relations Coordinator of Kazakhstan Association of the Blockchain and Data Center Industry, Sergei Putra, said:
“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.”
Fraud is another reason to introduce secure cryptocurrency exchange. In the past Kazakhstani investors have purchased many fake cryptocurrencies instead of real currency and ended up without any money or coins.