- Kazakhstan aims to create a national crypto bank to regulate 90% of currently illegal transactions, ensuring transparency and legal oversight.
- The bank will centralize monitoring of exchanges and mining, integrating crypto into the national financial system and preventing illegal activities.
- This move seeks to legitimize the crypto sector, attract foreign investment, and end shadow operations through state-level institutional control.
Kazakhstan is planning to establish a national crypto bank to regulate all cryptocurrency transactions in the country. Lawmakers claim that 90% of crypto operations currently take place outside the legal framework. This state-backed framework is aimed at mitigating risks for both users and the economy.
The new institution, proposed by Azat Peruashev, will serve as a central authority for monitoring and facilitating legal crypto activity, including exchanges, mining operations, and on-chain transactions.
Some of the key objectives of the crypto bank would be to ensure compliance and transparency across all digital asset activities. Integrate crypto into the national financial system with proper oversight. And prevent illicit transactions, tax evasion, and unauthorized trading.
Back in 2022, Kazakhstan accounted for 18% of the global “hash rate” – the amount of computing power required to mine BTC. Before China’s crackdown on bitcoin mining, the figure was just 8%. Kazakhstan’s crypto mining farms are mostly powered by aging coal plants that are causing a lot of concern for authorities as they seek to decarbonize the economy.
Kazakhstan’s Crypto Crackdown: From Grey Miners to State Bank
At the time, the Kazakh government planned to crack down first on unregistered “grey” miners which the government estimates might be consuming twice as much power in comparison to the “white” or the officially registered ones
The latest move could legitimize the crypto sector while paving the way for foreign investments and regulated platforms. It could also attract local investments and boosts tax income as well as position the nation as a fintech hub, luring global crypto businesses. All these might inspire other countries to rethink crypto rules, pushing for global regulatory harmony
Overall, it signals a growing trend of state-level crypto integration, not just in adoption but also institutional control. Looks like the era of shadow crypto operations might be coming to an end in Kazakhstan as regulation is stepping in fast.