Kazakhstan embraces crypto and mining by doing this
While one part of the world was trying to tackle the concerns that comes with cryptocurrencies, other nations were trying to boost the financial capabilities of their citizens through crypto. Joining this list of nations was Kazakhstan, which was allowing crypto users to open bank accounts.
The Kazakh Association of Blockchain and Data Center Industry noted that the crypto exchanges registered based on the Astana International Financial Center [AIFC] will start working with local banks, allowing their clients to openly work with cryptocurrencies. This will come into effect after the launch of the AIFC’s pilot project with the second-tier, as per reports.
The users will be able to gain access to crypto exchanges if they own a legal bank account with one of the AFIC registered banks. The users can then use this account to transfer money, buy crypto, and use other exchange-specific services. This will also allow users to transfer crypto as fiat back into their account, as banks act as an intermediary for transactions.
This pilot project will be carried out for a year by the government to assess the risks and benefits of digital assets. Currently, the circulation of digital assets was prohibited in the country and this pilot could help reverse the ban or at least bring in some relaxation in the norms.
According to the Government Relations Coordinator of the Kazakh Association of Blockchain and Data Center Industry Sergey Putra:
“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.”
Kazakhstan witnessed a six-fold growth in mining and became the third-largest producer of cryptocurrency in the world. Currently, nearly 6% to 8% of the world’s mining volume is concentrated in the country. As the demand for cryptocurrencies hits north and businesses flood in, it was imperative for the government to not only recognize crypto but also ensure the financial security of its citizens.