14/06/19 11:29 UTC±0

Financial geography: cryptocurrency in Kazakhstan

How cryptocurrencies develop in Kazakhstan: crypto-geography
How cryptocurrencies develop in Kazakhstan: crypto-geography

The Republic of Kazakhstan ranks second in size among the CIS countries. According to the 2018 census, 18,395,660 people live in the country. It is not at all strange that, with such many people, many Kazakhs are actively interested in cryptocurrencies, mine and sell digital money on exchanges.

In this article we will talk about cryptocurrency regulation in the territory of Kazakhstan, about the conditions for mining, cashing and working with cryptocurrencies. In addition, we will talk about Kazakhstan crypto-exchanges, data centers for cloud mining and the conditions for the development of the crypto-industry


Astana International Financial Centre (AIFC)

The local regulatory authority, Astana International Financial Centre, has a very positive attitude towards the cryptocurrency industry. For example, the AIFC created a separate legal field for working with cryptocurrencies, their regulation and functioning of local exchangers and exchanges.

In July 2018, the relevant AIFC regulations were issued. Cryptocurrencies here have received the status of "independent circulation object" or Private Electronic Currency. Cryptocurrencies on the territory of Kazakhstan are defined as private (personal) money, which deserves the "digital expression of value". At the legislative level, digital money was adopted as "digital units of account for exchange or accumulation".

From this the Kazakhs have a positive attitude towards cryptocurrencies, although they do not recognize them as official means of payment. For purchases for crypto in the virtual space, they follow the rules for "a separate type of market operations (Market Activities)". What in general does not change the essence of the matter – want to buy, want to sell: everything is legal and settled.


"Marchenstrey" fintech-project

In October last year, the first blockchain project was presented in Kazakhstan. The "FinTech" Association and the AIFC personally presented the "Marchenstrey" exchange cryptocurrency platform to President Nursultan Nazarbayev. The head of state reacted positively to the innovation novelty, and the stock exchange was successfully launched and exists to this day.

By the way, within a few months after the launch, the exchanger partially came into the possession of the Russian Federation under a friendly program "supporting payment and fintech projects". Currently, several working groups from Kazakhstan and about twenty developers from Russia are working on the Marchenstrey project.


Data centers in Kazakhstan

As we already wrote above, Kazakhstan is the second largest state in the CIS, with a relatively small number of people Well-known cloud mining services decided to use kilometers of free space and low-cost electricity.

So, at the beginning of last year, the well-known Genesis Mining company signed a contract with KZ systems. According to the terms of the agreement, Genesis Mining must pay an investment of 1 million Euros and, after that, can start building a computer center in Pavlograd in the territory of the Kazakhtelecom center. Within a few months after the start of construction, the company attracted about 6.25 billion tenge of foreign investment.


Ban on cryptocurrency advertising

With that, in general, Kazakhstan is positive about cryptocurrencies and digital assets. In 2017, the Head of the National Bank, Daniyar Akishev, stated that there is a need to introduce a ban on advertising of cryptocurrencies and ICO in the media. The ban proposal was ignored, but due to the many negative comments about ICO – National media cannot advertise the sale of cryptocurrency and tokens on stock exchanges. As for the privatized media, they are not restricted.

Interesting in the section: STO (Security token offering) – the specifics of the work, the main differences from the ICO


Fines in Bitcoins

In 2018, developers from Kazakhstan presented a new application that will allow them to pay car fines in Bitcoins. The OKauto.kz app is free and is supported by the Android operating system. According to the characteristics, the application automatically converts the cryptocurrency into the national tenge and sends payment to the designated address.


Mining under the power station

In the city of Ekibastuz near the state district power station, GRES-1, there is a mining center. The industrial zone was equipped and presented by the head of the urban planning department, Serik Kapdubov. The premises for mining equipment took almost 400 hectares.

The mining center in Ekibastuz was presented at the end of 2018. Currently under construction and industrial work. The exact launch date is not yet known.


This is the case with cryptocurrencies in Kazakhstan. The leader in the sale of mining equipment, crypto and exchangers work is Astana, the second place is occupied by the capital, Nur-Sultan. At the same time, there are more than 2000 Bitcoin exchangers operating in the territory of large cities, located mainly in shopping and financial centers.

Editor: Pereyidenko Ihor

#cryptocurrency #Kazakhstan #Astana #Pavlograd #mining #datacenter #Ekibastuz #OKauto #Daniyar Akishev #GenesisMining #KZsystems



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