Kazakhstan Ready to Legalize Mechanism to Convert Cryptocurrencies Into Cash

Kazakhstan is ready to legalize the mechanism to convert cryptocurrencies into cash. (photo: doc. pixabay)

JAKARTA - Kazakhstan is ready to legalize a mechanism for converting cryptocurrencies into cash if there is a demand. This was confirmed by President Kassym-Jomart Tokayev, to the local news agency, Informburo on 28 September.

Speaking at the international forum Digital Bridge 2022, Tokayev stressed that Kazakhstan aims to become an international leader in the field of digital technology, cryptocurrency ecosystem, and regulated mining.

He noted that the government of Kazakhstan has drawn up amendments in the national law to pilot the mechanism for converting cryptocurrencies at the Astana International Financial Centre.

"We are ready to go further. If this financial instrument demonstrates further relevance and security, it will surely receive full legal recognition,” Tokayev said, as quoted by Cointelegraph.

The country's president reportedly visited the booth with major local lender Eurasia Bank and crypto exchange Intebix at the 2022 Digital Bridge event.

According to local reports, Eurasian Bank and Intebix announced that they have jointly completed the bank's first regulated cryptocurrency purchase for fiat. The precedent has marked a major milestone in Kazakhstan's crypto adoption, allowing Kazakhs to legally buy crypto for tenge, the national currency.

Other companies in the crypto pilot project include crypto exchanges such as ATAIX as well as Kazakhstan's largest bank, Halyk Bank and Altyn Bank.

The news comes as thousands of Russians enter Kazakhstan just a week after Russian President Vladimir Putin announced the mobilization of some of his reservists to fight in Ukraine. On September 21, Halyk Bank suspended the use of Russia's Mir payment card amid warnings of sanctions by the United States Treasury.

Kazakhstan is not the only country that has emerged as a popular destination for Russians leaving the country and has been working to increase crypto adoption. Neighboring Georgia has also moved to introduce new crypto regulations to become a global crypto hub.

While countries like Georgia and Kazakhstan appear to be welcoming crypto alongside Russia fleeing mobilization, Europe is increasingly concerned about Russians turning to crypto for access to their money.

After limiting Russian payments to European crypto wallets to 10,000 euros in April, the EU is now also reportedly planning to ban Russian citizens and entities from holding any assets in EU crypto wallets.

As previously reported, Russia largely relies on foreign crypto infrastructure to conduct cryptocurrency operations. The Russian bank has repeatedly argued that the country should not legalize any local crypto exchange.