Will Kazakhstan be the Next Country to Legalize Crypto?

Paigambar Mohan Raj
Source: Caspian News

According to reports, Kazakhstan might just become the next country to legalize crypto. The news comes right after many Russians began to flee to the ex-Soviet nation after President Putin gave orders for partial conscription.

Kazakh President Kassym-Jomart Tokayev recently spoke at the international forum Digital Bridge 2022, where he stressed that Kazakhstan aims to become a leader in the field of cryptocurrencies, regulated mining, and digital technology. President Tokayev said that Kazakhstan’s national law has been amended by the government in order to test a mechanism for converting crypto at the Astana International Financial Centre.

Tokayev stated,

“We are ready to go further. If this financial instrument shows its further relevance and security, it will certainly receive full legal recognition.”

President Tokayev apparently stopped by the joint exhibit of crypto exchange Intebix and the region’s largest lender, Eurasian Bank. Local media reported that the Eurasian Bank and Intebix performed the bank’s first regulated crypto-for-fiat transaction together. The event is a major milestone for the country’s cryptocurrency adoption. The move will allow citizens to legally buy crypto, in exchange for their national currency Tenge.

Other firms involved in the pilot project include crypto exchange ATAIX, Altyn Bank, and Halyk Bank.

Does Russia have anything to do with Kazakhstan’s crypto laws?

The news of Kazakhstan’s pro-crypto stance follows the heavy flow of Russians into the country. After President Putin announced partial mobilization, thousands of Russians began fleeing their country. Many even went to Kazakhstan’s neighbor, Georgia. Georgia is also attempting to introduce cryptocurrency regulations in its territory.

However, it is unlikely that the inflow of Russians has anything to do with Kazakhstan’s cryptocurrency stance. In fact, Halyk Bank suspended the use of Russia’s Mir payment cards after American sanctions warnings.

Amid western sanctions, Russia also approved cryptocurrencies for cross-border payments. The move was a way to bypass western sanctions placed on the country for its invasion of Ukraine.

However, it is also possible that being former Soviet nations, the neighbors are keeping their trade options open. With Russia approving its crypto laws, perhaps the region is gearing towards moving to a newer method for cross-border payments.