Kazakhstan Preparing to Prohibit Crypto Trading and Mining, Says Central Bank

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The Kazakhstan chairman of the central bank has announced that the bank is in the final stages of preparing a legislation to outlaw the purchase and sale of digital currencies in the country plus any form of crypto mining, citing several risks.

National Bank’s Crackdown on Crypto

Daniyar Akishev, the National Bank of Kazakhstan‘s chairman said the country is planning to prohibit buying and and selling of cryptocurrencies plus any form of mining of cryptocurrencies. In one of the interviews, the chairman is quoted saying that the National Bank is very cautious and conservative on matters regarding cryptocurrency. He added that the bank is developing stringent measures to prohibit the sale and purchase of cryptocurrency.

Risks the Central Bank Sees

Accoding to Akishev, people should expect to see lot of problems and challenges concerning cryptocurrencies, particularly when it comes to protection of customers’ rights. He has since declared his intentions to reduce the risks which are associated with the national market. He admitted that no central bank in the whole world has the capacity to administer the cryptocurrency market in a cross-border market.

Akishev noted that another major risk is the tendency to use cryptocurrency for illegal and criminal activities. He said Cryptocurrency is an ideal avenue for engaging in money laundering as well as evading taxation. Akishev said the position taken by the central bank is supported several state organs and bodies in the country.

Last year Akishev announced that the central bank was planning to employ restrictive measures to some of the activities that relate to cryptocurrency in the country so as to protect people from speculative risks. At the time, he said the bank had sent a proposal to the government suggesting to undertake a number of measures among them prohibiting or limiting the activities of companies which are engaged in generating cryptocurrencies.

This announcement has come at a time when interest in digital currencies in the country has risen 15-fold this year as compared to last year. This is according to a report by Yandex.  The report further says that many people are searching 10 times more for word related to crypto mining, video cards and how to mine.

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