Kazakhstan’s Central Bank Looks To Ban Cryptocurrencies

News, Regulation | April 2, 2018 By:

The National Bank of Kazakhstan, the country’s central bank, is considering banning cryptocurrency trading and mining, citing several risks.

In an interview with Sputnik News, National Bank of Kazakhstan Chairman Daniyar Akishev said the central bank has been taking a very conservative approach towards cryptocurrencies, and they now welcome nothing but “extremely tough restrictions.”

“We want to prohibit purchase and sale of cryptocurrency in national currency,” said Akishev. “We want to prohibit the stock exchange’s activities in this area, as well as every type of mining.”

The central bank chairman said cryptocurrencies lead to many problems and that they are considering the ban to protect its citizens from scams and fraud.

“We minimize the risks related to the national market,” Akishev said “However, no central bank has all the instruments to control this market in the cross-border market. Therefore, at least, we must prevent this risk via the national currency.”

Akishev also said that the central bank and the majority of Kazakhstan’s state bodies believe that cryptocurrencies are “an ideal instrument for money laundering and tax evasion.”

In October 2017, the National Bank of Kazakhstan submitted proposals to its government to restrict some crypto-related activities. At the time, Akishev said the high volatility of cryptocurrency prices, in the short term, gives the owner the opportunity to make money on speculative transactions. But in the future, it may lead to significant damage from the loss of funds by citizens.

“We sent our proposals to the government, in which we suggest carrying out a series of tougher measures, including prohibiting the exchange of the national currency for cryptocurrencies, prohibiting the activities of some companies that generate cryptocurrencies, and so on,” Akishev said.