Kazakhstan aims to become a cryptocurrency hub as 100,000 Russians flock to the country

The President of Kazakhstan – Kassym-Jomart Tokayev – said that the authorities are ready to introduce a mechanism that will allow the conversion of cryptocurrencies into cash if there is sufficient demand for such services.

The positive tone towards the digital asset industry comes days after nearly 100,000 Russians crossed the border into Kazakhstan to escape the partial military mobilization announced by Vladimir Putin.

Embrace cryptocurrency more

In a recent announcement, President Tokayev revealed that the government intends to turn Kazakhstan into a global hub for digital assets.

Specifically, the authorities aim to present a project that will make it possible to convert cryptocurrencies into cash and vice versa in an orderly and secure manner. The political leader said that this initiative would be completed if citizens showed enough interest in digital assets:

“Currency conversion is already underway at the Astana International Financial Center site as part of a special pilot project. For this, innovative changes have been made to national legislation and regulations. We are ready to move forward. If this financial instrument shows more demand and security, it will definitely get full legal recognition.”

Kasim-Jomart Tokayev, Source: The Guardian

The wave of immigration from Russia may be the reason for Kazakhstan to focus on cryptocurrency. A week ago, Vladimir Putin ordered a “partial” mobilization of 300,000 men in an attempt to turn the tide of the war in Ukraine.

It seemed that not all Russians wanted to fight, which prompted hundreds of thousands to leave the nation’s borders in a matter of days. Its southern neighbor Kazakhstan received more individuals than any other country – about 98,000.

Cryptocurrencies have proven to be a preferred financial instrument for war-torn nations. Before that, some Ukrainians who believed that digital assets could ease their monetary problems fled to countries with a crypto-friendly stance, such as Portugal.

How is cryptography developed in Kazakhstan?

The Asian country is primarily known as a major player in the cryptocurrency mining sector. According to the latest estimates, it accounts for more than 13% of the global hash rate, which means that only the United States and China are ahead.

In June of this year, Galymzhan Pirmatov – the head of the Central Bank of Kazakhstan – stated that the niche of digital assets is an exciting issue that the institution should not ignore:

“We are interested in the innovation opportunities that these new technologies offer us. Therefore, we will conduct these discussions so that our decisions do not adversely affect the overall stability and interests of consumers in financial services.”

Days later, the local government launched a project to encourage local banks to interact with cryptocurrency exchanges.

A month ago, the world’s largest digital asset platform Binance received regulatory approval to operate in Kazakhstan.

Kazakhstan aims to become a cryptocurrency hub with 100,000 Russians pouring into the country for the first time on CryptoPotato.

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