Kazakhstan to officially recognize crypto trading by allowing investors to open bank accounts for crypto transactions

While some governments have opted to restrict banks from giving financial services to crypto-related firms, Kazakhstan appears to be backing the trend. Instead, the Central Asian country is reportedly planning to officially allow local banks to offer financial services to players in the crypto industry.

The Kazakh Association of Blockchain and Data Center Industry said that banks will soon be able to open accounts for those who want to trade in crypto assets like Bitcoin (BTC), the Astana Times reported. This will be made possible with the upcoming launch of the Astana International Financial Center’s (AIFC) pilot project with second-tier banks.

Once the project is launched, crypto exchanges can start coordinating with local banks so their clients can officially and openly engage in crypto transactions. Investors need to open a legal account with a bank registered with the AIFC before they can start trading on crypto exchanges.

Investors can then start the start using their bank accounts to send or receive money transfers, buy crypto, and make other transactions on the exchange. According to the report, the bank will act as an intermediary for their transactions.

The pilot project will run for a year. This will allow the government will assess cryptocurrency’s potential risks as well as benefits during this period.

Experts say that one of the major reasons for the Kazakh government to officially recognize crypto is the country’s increasing share in the global cryptocurrency mining industry. China’s crackdown on crypto trading and mining led to the drop of its market share by almost 30 percent, giving other countries such as Kazakhstan the opportunity to increase their presence in the global crypto mining scene.

In fact, Kazakhstan’s has increased its global crypto mining share grew by six times since then. The country contributes between six to eight percent of the world’s mining volume, becoming the third-largest source of newly-minted digital currencies such as Bitcoin in the world.

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