Local banking institutions in Kazakhstan to open cryptocurrency-related bank accounts, according to a local news station report. This will enable local crypto businesses to provide crypto investment services legally.
Kazakhstan’s government is apparently intending to legally enable local banking institutions to open cryptocurrency-related bank accounts.
Several banks in Kazakhstan will soon be formally permitted to provide services to companies and businesses that deal in cryptocurrencies such as Bitcoin (BTC), according to local news station Khabar 24.
According to the report, it is unknown whose financial institutions or banks will join in the pilot project, citing officials from Kazakhstan’s Data Center Industry and Blockchain Association.
By signing up for the project at Astana International Financial Centre, a significant financial hub in Kazakhstan, cryptocurrency exchanges will be allowed to collaborate with banks.
The one-year pilot initiative aims to allow local crypto businesses to legally provide crypto investment services and allow investors to safely acquire and sell cryptocurrencies such as Bitcoin.
The Kazakhstan government also plans to analyze the potential dangers associated with digital currency investing as part of the project, despite the fact that crypto trading is not yet permitted in the nation, according to the article.
The Kazakhstan Data Center Industry and Blockchain Association did not immediately react to a request for comment from Cointelegraph.
The announcement comes as a result of China’s current crypto mining crackdown, which has drawn increasing attention to the Republic of Kazakhstan.
Bitmain and Canaan, two of the major Chinese crypto mining businesses, have begun collaborating with Kazakhstani entities to operate mining facilities and services.
Despite the fact that Kazakhstan’s crypto mining business is gaining traction, the association’s president Alan Dordjiev cautioned that it is still too early to recommend a substantial move of Chinese crypto mining capacity to the country.