The Kazakhstan government is reportedly planning to officially authorize local banking institutions to open bank accounts for cryptocurrency transactions. Several banks in Kazakhstan will soon be officially approved to service companies and businesses providing exposure to cryptocurrencies like Bitcoin, local news channel Khabar 24 reported. Citing executives from the Data Center Industry and Blockchain Association of Kazakhstan, the report notes that it is unclear what financial institutions or banks would participate in the pilot project.
The pilot project will reportedly run for one year.
Cryptocurrency exchanges in the country would start cooperating with banks by signing up for the Astana International Financial Centre project, a major financial hub in the Central Asian country. The pilot project will reportedly run for one year, aiming to enable local crypto businesses to legally provide crypto investment services and allow investors to buy and sell cryptocurrencies like Bitcoin safely. As part of the project, the government will also assess the potential risks associated with cryptocurrency investment as crypto trading is not yet legally adopted in the country, the report noted.
Bitcoin miners flee to Kazakhstan amid a crackdown in China.
The news comes amid the Republic of Kazakhstan drawing increased attention from global bitcoin miners due to an ongoing bitcoin mining crackdown in China. Some of the largest crypto mining companies based in China, Bitmain, and Canaan, have started working with entities in Kazakhstan to run mining facilities and services in the country. The association’s president Alan Dordjiev noted that despite the crypto mining industry increasingly gaining momentum in Kazakhstan, it is still too early to suggest a serious relocation of Chinese crypto mining powers to the country.