Kazakhstan President Confirms Intention to Legalize Crypto as Russians Flock Border

Estimated read time 2 min read
  • Kazakhstan has signaled that it’s ready to legalize crypto as it encourages broad international transfers.
  • This follows an increase in migration into the country by Russians fleeing their country amidst the escalation of the Ukraine-Russia war.

The President of Kazakhstan, Kassym-Jomart Tokayev, has hinted at his government’s readiness to legalize and embrace cryptocurrencies. This comes off a major development by one of the largest banks in the country. Per local reports, the major bank has completed the first purchase of crypto for fiat. With its success, the administration is ready to approve the buying, selling, and holding of cryptocurrencies such as Bitcoin, Ethereum, and XRP.

Interestingly, the latest regulatory sway comes after the country saw an upsurge of immigrants coming from Russia. Since Russian President Vladimir Putin called on his army reserves, soldiers opposed to the war in Ukraine have been fleeing the country. Away from Poland, Kazakhstan and Georgia have been preferred destinations.

With the latest development, Kazakhstan could be encouraging the Russians to use crypto to transfer their wealth into the former Soviet republic. In recent months, the Russian economy has been depending on the crypto infrastructure after a majority of western financial institutions boycotted operating in Russia.

After visiting the major local lender Eurasian Bank and the Intebix crypto exchange at the Digital Bridge 2022 event, the Kazakhstan president reportedly stated;

We are ready to go further. If this financial instrument shows its further relevance and security, it will certainly receive full legal recognition,

Owing to the cheap electricity offered in Kazakhstan, the country has struggled with illegal Bitcoin mining. However, it has created a framework that encourages illegal operations in the country. Some metrics show that Kazakhstan became the second biggest crypto-currency mining country in 2021.

With Bitcoin and Ethereum still the most stable and dominant cryptocurrencies in the space, a majority of new entries into the market will seek the largest cryptocurrency and largest altcoin in the world, respectively. At the time of press, Bitcoin is exchanging for around $19,000. Ethereum on the other hand is trading for $1,500 following its retreat after the Merge upgrade. With greater adoption, these prices are expected to rise significantly.

Mary Jane

A writer. A poet. A believer in financial innovation.

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