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Kazakhstan’s Central Bank Mulls Over a Complete Ban of Cryptocurrencies in the Country

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In an interview with Sputnik News, the National Bank of Kazakhstan chairman, Daniyar Akishev said that the country’s central bank is taking a very conservative approach on cryptocurrencies and is looking to implement extremely tough restrictions.

Akishev said that the National Bank of Kazakhstan is trying to prohibit the exchange of the country’s national currency, the Tenge, with cryptocurrencies. 

In Kazakhstan, the National Bank is taking very conservative approach toward the matter, and it welcomes nothing but extremely tough restrictions. Therefore, we want to ban the exchange of digital currencies for the national currency. We want to prohibit the stock exchange’s activities in this area, as well as every type of mining,

– Akishevtold the Russian government news site.

According to Akishev, cryptocurrencies come with large amounts of problems with the most major being the threat of protection of user rights. He argued that through the complete banning of crypto-related activities in the country, the country will minimize a lot of risks related to the national market. He however agreed that no central bank has all the instruments to control the cross-border market.

Money Laundering and Tax Evasion

Akishev noted that a major risk associated with the use of cryptocurrencies was committing illegal acts. “The digital currencies are an ideal instrument for money laundering and tax evasion,” Said Akishev.

He was confident that the central bank’s harsh stance on the digital currencies was supported by most of the country’s state bodies and organs. The chairman is looking forward to collaborating with other state agencies to help fight the use of cryptocurrencies for money laundering and other financial crimes.

Akishev’s fears of the use of cryptocurrencies to commit different financial crimes has also been echoed by other financial heads across the world. Recently, Japan called on other G-20 countries to effect tough anti-money laundering laws that will apply globally.

Germany and France are also calling on other European Union members to come up with universal laws and regulations that will prohibit the use of cryptocurrencies in different financial crimes.

While most of the countries have proposed or implemented different forms of regulations and laws to govern the cryptocurrency industry, very few have proposed a total ban on cryptocurrency-associated activities. The proposal by Kazakhstan’s central bank may come as a shock to many blockchain and cryptocurrency enthusiasts in the region and the world.

CoinDesk reports that despite the tough talks by Kazakhstan National Bank’s chair, the country does not have any regulations, laws or bills aimed at curbing the use of cryptocurrencies in Kazakhstan at the moment. His proposal may never even be implemented in the end.

Image Credit: Deposit Photos

What’s your take on Kazakhstan’s central bank’s proposal to ban all cryptocurrency-related activities in the country? Is the bank’s chair too harsh on cryptocurrencies? Share your views with us in the comments section.

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