Kazakhstan’s Central Bank has proposed the government to restrict some cryptocurrency activities. Furthermore, as some experts believe, the intention is to ban mining factories in the country. The restrictions on exchanges and mining would be analyzed by the government in the next weeks.
Restrictions on Exchanges and Mining
The Russian news agency Ria Novosti, reported that the central bank of Kazakhstan proposed restricting some activities regarding cryptocurrencies. The intention is to protect investors from speculative risks that cryptocurrencies have, commented Daniyar Akishev, central bank’s chairman, at a conference in Astana.
“We sent our proposals to the government, in which we suggest carrying out a series of tougher measures, including prohibiting the exchange of the national currency for cryptocurrencies, prohibiting the activities of some companies that generate cryptocurrencies and so on,” said Akishev.
Some cryptocurrency professionals in the country believe that it is impossible to ban mining in Kazakhstan. “We agreed that it would be virtually impossible to do this, however, they agreed that regulatory measures should be introduced,” experts commented to Tengrinews.
Before any regulation would start to make effect in the territory, they should be analysed by the government. In addition to it, a definition around what is going to be regulated should be carefully examined.
Cryptocurrency Situation in Kazakhstan
Kazakhstan has taken another step to control cryptocurrencies. Some days ago, Astana International Finance Centre (AIFC), said that signed a partnership to develop a national cryptocurrency.
“Astana’s leading financial regulators have already commenced their work and are laying the foundation for Kazakhstan0s fin-tech ecosystem. We believe that the AIFC can become an international hub for blockchain operations. The development of the digital assets market is our key priority in the near future,” stated Kairat Kelimbetov.
Losing The Possibility of Being a Blockchain Hub
Kazakhstan’s intention was to develop its fin-tech sector and compete with other countries in the region. Restrictions on exchanges and mining would only hurt these objectives.
“The United States and Singapore want to equate the activities of crypto-economic with ordinary activities in the financial sphere. In Switzerland, this direction is strongly encouraged. Japan supports some cryptocurrencies as a means of payment. We want to say that in this direction AIFC will be on the edge concerning understanding the processes that are taking place. But on the other hand, we are responsible for issues of financial stability and regulation of certain financial institutions.” Commented Kelimbetov.
Instead, Singapore is avoiding regulations on cryptocurrencies. Singapore, tries to use the position they have as Financial Hub to develop blockchain technology and attract investments. What is going to be regulated is the activity around cryptocurrencies.
“Our attitude is to keep an open mind about Bitcoin. Very few jurisdictions regulate cryptocurrencies per se. The currency itself does not pose the kind of risk that require regulation. Our intention is to look at the activity around the cryptocurrency and then make an assessment about which regulation would be suitable”, told Ravi Menon, head of the Monetary Authority of Singapore, to Bloomberg.