Kazakhstan to Legalize the Processing of Cryptocurrency Payments Through Banks

Reportedly, a new year-long pilot project initiated by the Kazakhstan government will allow financial institutions to legitimize the provision of processing cryptocurrency payments and other related services. 

This authorization will allow national banking institutions to process crypto payments by designating bank accounts to such services. According to a report by Khabar 24, this will mean the approval for enterprises to complete their transactions via Bitcoin (BTC) as well as other cryptocurrencies. 

Officials from The Data Center Industry and Blockchain Association of Kazakhstan have stated that should this project launch, through signing up with Astana International Financial Centre as a major national financial institution the collaboration among banking institutions and crypto exchange portals will be an integrated and efficient process. However, the participation of particular banking and financial institutions in this project is yet to be confirmed. 

In the one-year duration of the alleged pilot project, Kazakhstan plans to promote the safe transaction of cryptocurrency investment services, thus reaping the opportunity of the expansion of the use of cryptocurrencies, Bitcoin in particular. Seeing as the country has yet to embrace cryptocurrency trading, this pilot project will also serve as an excellent tool for closely assessing and appraising the risks of cryptocurrency trading and how those risks can be better managed through the integration of cryptocurrency investments services in the financial institutions of Kazakhstan. 

Since China’s latest suppression of cryptocurrency mining, other countries and Kazakhstan included have retained ever-growing attention from crypto miners, where Canaan and Bitmain have been increasingly active in reaching agreements for the mining operations to resume in Kazakhstan. Nonetheless, president of The Data Center Industry and Blockchain Association of Kazakhstan Alan Dordijev has been quick to emphasize the premature links between Chinese crypto miners and Kazakhstan, regardless of the current redeployment surges. 

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