Kazakhstan will provide digital currency bank accounts as the nation expands its cryptocurrency mining to the international market

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According to the Kazakh Association of Blockchain and Data Center Industry, the digital currency platform filed with the Astana International Financial Center (AIFC) will soon begin working with local banks, enabling their customers to work with digital currency formally and openly. Following the launch of the AIFC’s trial program with second-tier banks, this will be possible.

An investor must have a valid account with one of the AIFC-registered banks to participate in the crypto exchange. People will be able to send money, purchase a digital currency, and perform different transactions on the exchange market using this account.

Moreover, the investor will be able to return the obtained income to their account with ordinary money. In this situation, the bank serves as a transaction middleman.

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The trial program will continue for a year and allow the Kazakh government to examine the dangers and advantages of cryptocurrencies. While digital currency is now illegal in Kazakhstan, industry analysts believe that after the project is completed, the prohibition on cryptocurrencies will become less strict or perhaps be lifted entirely.

There are some explanations for digital currency’s acceptance in the nation, as per specialists. First, China’s share of Bitcoin mining worldwide has declined by nearly 30% since September 2019, accounting for less than 50% of the network’s capacity.

Kazakhstan’s mining sector grew sixfold due to this dramatic shift, making it the world’s third-biggest producer of digital currency.

At present, Kazakhstan accounts for six to eight percent of the world’s mining output.

Government Relations Coordinator of the Kazakh Association of Blockchain and Data Center Industry Sergey Putra stated:

“The global premise is that crypto turnover is a fairly large volume of finance. It is billions of dollars of daily turnover around the world. And even if Kazakhstan takes a fraction of a percent, even one percent of this turnover, this is serious money that will come to Kazakhstan in the form of investments and that will remain here in the form of taxes, jobs and salaries. This is a very large industry, which Kazakhstan is still bypassing.”

Fraud is another argument for creating a secure digital currency exchange. There have been instances where Kazakh investors have purchased a fake coin rather than a real digital currency and have been left with no money and no coin.

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