Kazakhstan Set to Facilitate Crypto Exchanges Following Russian Influx. Due to the conflict between Russia and Ukraine, the Kazakh president is about to legalize a new way to exchange cryptos for fiat currency.
Indeed, many Russians are currently fleeing their country following Vladimir Putin's statement about the partial mobilization for war in Ukraine. To facilitate the transfer of capital, Kazakhstan is considering solutions. Let's see together what the government plans to deal with these unprecedented events.
Kazakhstan, already a foot in the world of cryptocurrencies.
Kazakhstan's policy has favored the installation of cryptocurrencies in the country in recent years. Indeed, it is one of the world leaders in terms of total crypto operations. One of the factors that can explain this is the policy of the country which favors the mining of digital assets.
Thus, according to Freeman Law, Kazakhstan finds itself in 4th place in the world for cryptocurrency mining. In the first place are China with 65%, the United States (7.24%), and Russia (with 6.9%).
Moreover, the number of crypto miners is expected to increase further in the next few years. Indeed, the Minister of Digital Development announced that $190 million should be allocated for crypto mining. On the other hand, the government estimates that by 2023, crypto investments will increase by $738 million.
At the 2022 Digital Bridge International Forum, Kazakh President Tokayev announced Kazakhstan's desire to become one of the world leaders in the field of digital technologies, cryptocurrency, and regulated mining.
This will result in the creation of an international financial center in the capital Astana. Moreover, he wants to draft new amendments to develop a crypto conversion mechanism.
“ We are ready to go further. If this financial instrument further demonstrates its relevance and safety, it will certainly receive full legal recognition,” Mr. Tokayev said.
A new cryptocurrency conversion mechanism.
The president would have approached Intebix and Eurasian Bank. The latter made the first transfer of cryptos against fiat currency. This event marks the beginning of the exchange of fiat currencies against cryptocurrency for the Kazakhs and this, in all legality.
There are also other companies participating in this new Kazakh project. We find the crypto exchange site ATAIX, the largest Kazakh bank Halyk Bank and finally Altyn Bank.
This news comes in a very particular context since thousands of Russians are coming to take refuge in Kazakhstan. Since the announcement of the partial mobilization of the reservists of Vladimir Putin, thousands of Russians have decided to leave their country in order not to fight in Ukraine.
For information, Kazakhstan shares 6,846 kilometers of borders with Russia. This makes it the country with the most borders with Russia just ahead of China (4,250 km) and Mongolia (3,485 km).
Kazakhstan has positioned itself in favor of the Ukrainian people. On September 21, one of the country's main banks banned the Russian payment system Mir. This decision follows the threat of sanctions from the United States if the country continues to use this payment system.
What policies for crypto in other countries?
Other countries bordering Russia have also accelerated cryptocurrency exchange processes. We can cite Georgia, which also wants to become one of the world leaders in the digital asset sector. This will allow Russians fleeing the mobilization to settle more easily, in particular by converting currency in a simplified way.
However, the same cannot be said for other European neighbors. On the contrary, instead of facilitating access to Russians via cryptocurrency services, Europe is taking restrictive measures. For example, last April, the European Union introduced a cap of €10,000 to all Russian citizens who wish to pay with their crypto wallets.
In addition to that, it is now forbidden for Russian nationals to have cryptocurrencies in their wallets throughout the European Union.
Russia meanwhile also relies heavily on cryptocurrencies to deal with the many banking sanctions that have been established against it.
Despite their young age, cryptocurrencies play a vital role in the conflict between Ukraine and Russia. Governments try as best they can to regulate this sector and sometimes act in a hurry. One wonders what role will cryptos have in the long term?
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