Kazakhstan reportedly allows local banks to service crypto firms as the Chinese miners, out of place as a result of widespread crackdown on crypto producers in the country, interact with the Kazakh business units.
AIFC pilot program
According to the Association of Blockchain and Data Center Industries in Kazakhstan, the government is moving towards allowing banks to allow the general public and businesses to trade crypto through their accounts at local banks.
Even if the scope of the program could certainly be expanded in the future, only the banks registered with the AIFC are currently[Astana International Financial Centre] be allowed to participate in the pilot program. The program is designed to explore the pros and cons of crypto. As reported, the banks participating in the program will belong to the second tier, the list of participants will not be published yet.
According to a senior coordinator at AIFC, there are several critical reasons the Fed decided to run a crypto pilot program. First, the country is home to between 6 and 8 percent of global crypto mining; second, several large crypto firms have ceased operations in the country; third, and perhaps most importantly, the prospect of fraud threatening the masses.
Basics of the program:
Sergey Putra stated that the global assumption is that the crypto market size is quite large. it is a daily volume of billions of dollars around the world. And even if Kazakhstan occupies a fraction of a percent, even better one percent of that volume, it is serious money that will flow to Kazakhstan in the form of investments, in the form of taxes, in the form of jobs, and here will remain salaries. This is a very large industry that Kazakhstan is still neglecting.
Resettlement of Chinese miners:
In addition, the chairman of the AIFC, Alan Dordzhiev, denied that the Chinese miners were massively relocated to Kazakhstan, as he stated that the relocation is a complex process and the miners have to go through a lot of documents and Covid is an obstacle to it.