Kazakhstan is preparing to legalize a mechanism that will allow it to convert cryptocurrency into cash, provided that there is demand for the solution.
The news was shared by President Kassym-Jomart Tokayev on September 28 through the local news agency, Informburo. Tokayev and Kazakhstan could make another decisive step towards cryptocurrency adoption at a time when the country is facing a growing influx of Russians who are fleeing their country over the Kremlin’s state-wide mobilization.
“We are ready to go further. If this financial instrument shows its further relevance and security, it will certainly receive full legal recognition,” Tokayev said. This comes shortly after news that the European Union will no longer allow Russian citizens to use crypto wallets that are regulated in the political block. Meanwhile in Kazakhstan, Eurasian Bank and Intebix have announced that they have been able to complete the first regulated crypto purchase for FIAT.
Kazakhstan’s time to shine in the cryptocurrency industry is not new. Following the clampdown on cryptocurrency miners in China in 2020, the country offered cheap electricity and a hospitable environment for companies relocating from the country. The country even considered building more power plant to address surging demand and went after unregulated cryptocurrency mining operations as they were adding disproportionate strain to the power grid.
Interestingly, the fleeing of hundreds of thousands of Russia has prompted neighboring Georgia to also take a harder look at its own cryptocurrency regulation. Both countries are now trying to position themselves better as potential hubs for regulated cryptocurrencies. With Russians having most of their foreign-currency deposits frozen, crypto can indeed prove to be a desirable option for many people fleeing to neighboring regions.