During a meeting with representatives of the financial sector on Friday in Almaty, the President of Kazakhstan Kassym-Zumart Tokayev expressed his opinion on the current state of the cryptocurrency industry in the country. Details of the speech were published on the official website of the President of the Republic of Kazakhstan and translated by Cointelegraph:
Cryptocurrencies are an objective factor that simply cannot be ignored. Its ability to influence the current financial system must be clearly assessed.
President Tokayev speaking at the conference Source: Akorda.kz
Then he added:
Therefore, work should be resumed with the formation of a balanced regulatory environment for the creation of cryptocurrency exchanges in the country. Other than that, it turns out that we are the second largest producer of cryptocurrency in the world (Bitcoin) and see little economic return.
According to Cambridge University, Kazakhstan’s share in the total Bitcoin (BTC) network hash rate is 18.10% – second in the world after the United States (35.40%) and ahead of Russia (11.23%). However, there are a large number of people who are mining bitcoin with a controversial legal situation in the country. According to some estimates, gray miners account for up to 50% of all crypto-mining activities in Kazakhstan.
In the context of President Tokayev’s statements, the lack of regulation of cryptocurrency leads, for better or worse, to the fact that the government receives very little tax revenue despite the strong growth of the industry in recent years. However, President Tokayev discussed the possibility of introducing a digital language as a “representative of the financial system” and reiterated his support for the development of financial technologies in Kazakhstan:
Our financial institutions must seize the opportunity and achieve ambitious goals. It is necessary not only to copy someone else’s experience, but also to develop and promote new forms of services that go beyond the borders of Kazakhstan. The state will make every effort to promote these initiatives.