Kazakhstan Will Ban Cryptocurrency And Mining Activities

The Kazakh government is preparing a law to ban the use, trade, and mining of cryptocurrency within their territory. This was said by the president of the Central Bank of the country, according to a report from the journal Ria Novosti.

Daniyar Akishev told the journal that Kazakhstan Central Bank has a very conservative view of the subjects of cryptocurrency, and that they will take such steps because of the risks involved with cryptocurrency and exchange. The main risk he mentioned is these cryptoassets used in money laundering schemes and as part of criminal activity in the country.

He mentioned that no central bank has the power to ban multi-border activities as discussed; so they will only concentrate on avoiding trading in the national currency. He did not mention anything about the legal and registered crypto business operating in the country; however, they will most likely be banned and forced to stop operations.

Also, Kazakhstan is home to a growing crypto mining community, comprised of big fans and operators, who benefit from cold weather (which means that cooling solutions are easier to implement) and cheaper electricity costs. This will make them stop their operation or go to the underground road.

The ban will take effect later this year, when all the rules for it will come into effect. This resolution is completely the opposite of what countries like Malta do, issuing lightweight regulations and providing incentives to recruit newbies to settle in their territory.