Kazakhstan Government Will Allow Banks To Open Crypto Accounts

Account in the form of cryptocurrency, opening soon in Kazakhstan. (photo credit: Pierre Borthiry/unsplash)

JAKARTA - The government of Kazakhstan is reportedly planning to officially allow local banking institutions to open bank accounts for cryptocurrency transactions.

According to local news channel Khabar 24 reporting on Sunday, July 25, several banks in Kazakhstan will soon be officially approved for service companies and businesses that provide exposure to cryptocurrencies such as Bitcoin (BTC),

Citing executives from the Kazakhstan Data Center and Blockchain Industry Association, the report notes that it is unclear what financial institutions or banks will participate in the pilot project. Cryptocurrency exchanges will be able to cooperate with banks by registering for projects at the Astana International Financial Centre, a major financial center in Kazakhstan.

The pilot project will reportedly run for one year, aiming to enable local crypto businesses to legally provide crypto investment services and enable investors to safely buy and sell cryptocurrencies such as Bitcoin.

As part of the project, the government of Kazakhstan also intends to assess the potential risks associated with digital currency investments as crypto trading has not yet been legally adopted in the country, the report notes.

The Kazakhstan Data Center and Blockchain Industry Association did not immediately respond to requests for comment from the media.

The news comes as the Republic of Kazakhstan is attracting increasing attention from global cryptocurrency miners due to the ongoing crypto mining crackdown in China. Some of China's largest crypto mining companies, Bitmain and Canaan, have started working with entities in Kazakhstan to run mining facilities and services in the country.

The president of the country's crypto association, Alan Dordjiev, stated that although the crypto mining industry is gaining momentum in Kazakhstan, it is too early to suggest a serious relocation of China's crypto mining power to the country.