Kazakhstan Is Going To Prohibit Cryptocurrency Trading

The National Bank of Kazakhstan is going to prohibit cryptocurrencies, because there is a risk of tax evasion and money laundering. The Bank’s negative approach on cryptocurrencies is being used to commit large-scale acts and activities.

“We want to ban the exchange of digital currencies for the national currency,” said Akishev. We want to prohibit the stock exchange’s activities in this area, as well as every type of mining.”

The government’s rising concern is associated with Kazakh people’s growing interest in digital currencies.

According to Reuters, cryptocurrency laundering and sanction evasions are grave concerns governments need to take into account. Reuters mentions that “if crypto-cleansing is not contained, state-level sanctions evasion threatens to escalate geopolitical instability.” They, however, believe that cryptocurrency money laundering and illegal acts go beyond a national issue but is instead a global concern.

Yet the country has not made a clear decision, but their potential prohibition on the use of cryptocurrencies closely mirrors Russian president Vladimir Putin’s cryptocurrencies concerns in October 2017.

Putin said, that the usage of cryptocurrencies carries serious risks. He said:

“I know the Central Bank’s position on that. Cryptocurrencies are issued by an unlimited number of anonymous bodies. Thus buyers of cryptocurrencies could be involved in unlawful activities.”

While being worried of cryptocurrency usage for illegal purposes, Putin concluded that digital currencies were taking shape as an acceptable means of payment in many countries across the world. Also they were becoming a legal asset for investing.

However, it remains uncertain whether Kazakhstan will launch a national cryptocurrency.