National Bank of Kazakhstan’s Proposals
The National Bank of Kazakhstan has proposed limiting some actions relating to cryptocurrency in the nation, Ria Novosti reported. The central financial institution’s chairman, Daniyar Akishev, stated at a press convention in Astana on Wednesday that that is “to protect the public from speculative risks,” the publication conveyed.
“The high volatility of the prices of the cryptocurrencies in the short term gives the owner the opportunity to make money on speculative transactions,” Akishev was quoted saying. “But in the future [it] may lead to significant damage from the loss of funds by citizens.” He revealed:
We despatched our proposals to the authorities, wherein we propose finishing up a sequence of harder measures, together with prohibiting the change of the nationwide currency for cryptocurrencies, prohibiting the actions of some corporations that generate cryptocurrencies and so on.
Amending Legislation
In addition, Akishev stated on Wednesday that the financial institution and the authorities are “developing an approach to the issuance and circulation of cryptocurrencies.” This reiterates his assertion final week that amendments to the laws will probably be developed to regulate them and that at the moment their authorized standing has not been decided.
According to him, the complexity lies in the options of cryptocurrencies, “which are supranational in nature, and also are not someone’s obligation or guarantee, including the state,” Ria Novosti detailed.
“The state cannot guarantee the real value and safety of funds based on cryptocurrencies, which have no security in the form of real assets and legally bound persons,” Akishev was quoted.
He famous that folks need to put money into cryptocurrencies however they aren’t taking measures to guarantee the security of their property. If the bubble out of the blue bursts, he exclaimed, “what will happen to the people who invested? I guess they can come to the state and say, ‘why did you not warn us in time?’ Therefore, I warn you now that these operations carry risks.”
Akishev was quoted by Kazinform admitting:
I nonetheless do not likely perceive what cryptocurrency is…it’s a software that doesn’t have a standard issuer, a single centralized physique, respectively, just isn’t backed by something and its worth relies solely on speculative operations.
Is It Possible to Ban Mining in Kazakhstan?
Following the statements by the chairman, Tengrinews interviewed some consultants to confirm whether or not it’s potential to ban mining in Kazakhstan. They “agreed that it will be 
just about not possible to do that, nevertheless, they agreed that regulatory measures ought to be launched,” the publication reported.
Financier Eset Butin expressed that mining itself doesn’t carry dangers for a rustic. He famous that mining just isn’t prohibited by regulation immediately and it’s every individual’s personal enterprise and danger whether or not to perform mining, including that:
“It is not going to be potential to construct any restrictions in phrases of house mining…An individual is engaged in mining, paying for electrical energy. What [are the] issues?
Lawyer Vitaly Kazantsev famous that “before banning mining in Kazakhstan, it will be necessary to give this process an exhaustive definition, and this can be difficult,” the publication described. “First of all, the very process of mining is carried out by those who extract cryptocurrencies independently, and the second part – companies that lease these mining farms, etc.,” he described. “Question, who does the chairman of the National Bank want to prohibit?”
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