Bitcoin and Ether in Kazakhstan: Legalization, Exchange, and Beyond
Bitcoin may potentially serve as a payment method in Kazakhstan, according to a professional's perspective.
In a shake-up for Kazakhstan's digital economy, deputies have raised the issue of legalizing unsecured digital assets like Bitcoin (BTC) and Ether (ETH) through licensed exchanges and exchange offices. The Prime Minister, Olzhas Bektenov, has expressed support for this idea, aiming to create a legitimate space for cryptocurrency transactions.
Kazakhstan has been eyeing the possibility of decriminalizing unsecured digital assets to combat their widespread illegal use and reduce the "grey" zone within the country's massive $15.5 billion annual turnover. Currently, unsecured digital assets, which are not tied to real assets and excluded from the country except for the Astana International Financial Center (AIFC), are at the center of this debate.
According to Nurhat Kushimov, General Manager of Binance Kazakhstan, the proposed changes will allow individuals to legally buy and sell cryptocurrencies, although their use as a means of payment is not on the table just yet. This regulatory shift, Kushimov says, is focused on establishing a transparent regulatory framework for cryptocurrencies, which could reduce their illicit use and bring needed clarity to the market.
This means that, in the near future, Kazakhstanis will legally be able to buy and sell cryptocurrencies like BTC and ETH through licensed platforms—but for now, questions about using these digital currencies for payments remain a subject for future discussions.
As the regulatory landscape evolves, further developments are expected to materialize. For instance, Kushimov envisions a future where the discussion about making payments in cryptocurrency may take center stage. Ultimately, these steps aim to provide users with a smooth transition from global platforms to licensed local ones without the fear of legal repercussions.
Leaves of caution have been issued, though, as the decriminalization of unsecured digital assets doesn't automatically grant immediate payment method privileges. In fact, a recent case in Almaty saw a conviction for illegal cryptocurrency trading—a reminder that the arena of digital assets requires careful navigation and adherence to the law.
As Kazakhstan embarks on this new cryptocurrency journey, we'll be watching closely—keep an eye on our pages for updates!
Sources:[1] Financial Action Task Force (FATF) - Travel Rule[2] International Institute for Sustainable Development (IISD) - Cross-Border Investment in Kazakhstan[3] Qubetics - Cryptocurrency Payments in Kazakhstan[4] Eng.tengrinews.kz - If a cryptobank opens in Kazakhstan, who will pay taxes
- The proposed changes in Kazakhstan aim to legally permit individuals to buy and sell cryptocurrencies like Bitcoin and Ether through licensed platforms.
- The legalization of unsecured digital assets in Kazakhstan is focused on creating a transparent regulatory framework for cryptocurrencies, which could reduce illicit use and bring clarity to the market.
- Despite the legalization of cryptocurrencies, their use as a means of payment is not yet on the table, remaining a subject for future discussions.
- While the decriminalization of unsecured digital assets in Kazakhstan may allow transactions, it does not automatically grant immediate privileges for using them as payment methods.
