Businesses that will render crypto trade services in the jurisdiction of Kazakhstan will be able to open up, maintain and operate bank accounts with their preferred banks. The commitment to ensuring full facilitation to crypto companies has been affirmed by Kazakhstan’s association for crypto.
Since China has taken strict action against crypto miners, Kazakhastan has become the most preferred place for China-aggrieved miners. So much so, this land-lock country of the world has become a hotspot for the crypto trading business as well.
Now Kazakhstan’s Government has decided to lend full support to the crypto market within the country. For this purpose, the whole banking sector of Kazakhstan has been allowed to facilitate exchanges for virtual assets’ trading. It has been informed that the banking sector has been advised to let the crypto exchanges open, maintain and operate bank accounts. However, the banking facilities will be available to only those exchanges which have been registered with the Astana International Financial Center (AIFC). The announcement of lending banking facilities to crypto firms was announced by the National Association of Blockchain & Data Center Industry (NABDCI).
AIFC is the national regulator that has been supervising crypto market space within Kazakhstan. While NABDCI is the association of blockchain that has been very actively operating within Kazakhstan’s crypto industry.
In addition, the banking customers too have been allowed to send and receive funds from the exchange through banking channels. However, the customers would only be able to open accounts with those banks which are in a relationship with their respective crypto exchanges. This is a great convenience for crypto customers who could send the money directly from the bank accounts to the firms. From there onwards they purchase their desired virtual assets. Furthermore, if crypto happens to sell their crypto assets, then the sale proceeds can then directly be transferred into their bank accounts. Similarly, any income earned from profitable investment shall also be allowed to be deposited into the personal accounts of the customers.
It seems that the Government is testing the project to assess the benefits as well as the risks of virtual currencies and assets. However, currently, crypto circulation is completely banned in the region. Yet, the exchanges are hopeful that by the passage of time the restrictions will be eased up or that the ban will be permanently removed. However, a lot is now dependent upon the success of the Kazakhstan Government’s initiative of allowing crypto exchanges to own and run bank accounts.
On the other hand, allowing crypto exchanges to hold bank accounts, is also beneficial for the banking sector as well. It is estimated that the banking sector will be able to have a portion of the turnover coming from the digital asset industry.