Currently, the Kazakhstan government prohibits the circulation of cryptocurrencies in the country. However, that may change soon as now the country’s banks can open accounts for crypto exchanges. However, there’s a catch: The banks can only open accounts for crypto exchange registered at Kazakhstan National Association of Blockchain and Data Center Industry.
Nevertheless, many people see this as a sign that the country could see some relaxation for cryptocurrencies. But why has the government changed its stance so suddenly?
Experts point out that banks in Kazakhstan can benefit from crypto turnover.
Sergey Putra coordinates relations with the government at Kazakhstan’s blockchain association. He noted that the global crypto economy represents a fairly large volume of finance: billions of dollars of daily turnover. He also added,
“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 huge industry, which Kazakhstan is still bypassing.”
Kazakhstan has been an optimal choice for crypto miners and companies. With its low-cost energy and lack of regulations, the country was a preferred choice most of the time till the government stepped in and prohibited it. However, due to China’s ongoing crypto ban, the government now realizes the importance of coin mining to its economy and banking system. As of now, Kazakhstan contributes about 6-8% of the global mining volume.
The local banking system can really benefit from processing financial transactions for the growing industry. But, the administration should provide a safe crypto exchange experience for the residents.