Kazakhstan is prepared to legalize cryptocurrencies as Russians flock to the nation
A large bank in Kazakhstan has completed its first crypto-to-fiat exchange, and the president is prepared to sanction exchange operations.
President Kassym-Jomart Tokayev said on September 28 that Kazakhstan is willing to formalize a system for converting cryptocurrency to fiat currency if there is sufficient demand.
Tokayev stressed at the international symposium Digital Bridge 2022 that Kazakhstan intends to become a global leader in digital technology, the cryptocurrency ecosystem, and controlled mining. He stated that the government of Kazakhstan has written revisions to national legislation in order to test a system for crypto conversion at the Astana International Financial Centre.
“We are prepared to advance. If this financial instrument proves its continued use and safety, it will gain full legal recognition, according to Tokayev.
At the Digital Bridge 2022 event, the president allegedly visited the combined stand of the major local lender Eurasian Bank and the Intebix cryptocurrency exchange.
According to local sources, the Eurasian Bank and Intebix have conducted the bank’s first regulated cryptocurrency purchase using fiat currency. The precedent represented a significant milestone in Kazakhstan’s crypto acceptance, enabling Kazakhs to legally purchase cryptocurrencies using their native currency, the tenge.
Other organizations participating in the experimental crypto initiatives include crypto exchanges such as ATAIX and Kazakhstan’s two major banks, Halyk Bank and Altyn Bank.
The revelation comes a week after Russian President Vladimir Putin approved a partial mobilization of reservists to fight in Ukraine, while hundreds of Russians enter Kazakhstan. Halyk Bank halted the usage of Russia’s Mir payment cards on September 21, in response to sanctions warnings from the United States Treasury Department.
Kazakhstan is not the only nation that has emerged as a popular destination for Russians emigrating abroad and has been pushing to promote crypto usage. Georgia, a neighbouring state, is also introducing new crypto legislation in an effort to become a worldwide crypto centre.
While nations like Georgia and Kazakhstan look to embrace crypto alongside Russians escaping mobilization, Europe has been more worried about Russians using crypto to access their money. After limiting Russian transfers to European crypto wallets to 10,000 euros in April, the European Union apparently now intends to prohibit Russian individuals and organizations from keeping any assets in EU crypto wallets.
According to prior reports, Russia has relied heavily on foreign crypto infrastructure for cryptocurrency activities. The Bank of Russia has stated repeatedly that the nation should not allow any local cryptocurrency exchanges.