With the increasing scrutiny over cryptocurrencies from several of the regulatory bodies across the globe, this time the National Bank of Kazakstan has proposed for restricting all cryptocurrency-related activities like mining and exchange operations within the country.
Daniyar Akishev, the chairman of the central bank, during a press conference in Astana said that such a step is likely to be taken to protect the interest of the investor community against the speculated risks. Akishev was quoted saying:
“The high volatility of the prices of the cryptocurrencies in the short term gives the owner the opportunity to make money on speculative transactions. But in the future [it] may lead to significant damage from the loss of funds by citizens.”
He further revealed:
“We sent our proposals to the government, in which we suggest carrying out a series of tougher measures, including prohibiting the exchange of the national currency for cryptocurrencies, prohibiting the activities of some companies that generate cryptocurrencies and so on.”
Also Read: Kazakhstan To Launch It’s Own Fiat Backed Cryptocurrency
Akishev also said that the Kazakhstan government and banks are working together for “developing an approach to the issuance and circulation of cryptocurrencies.” This statement echoes his previous claims that necessary amendments to the existing legislation are being developed in order to determine the legal status of the use of cryptocurrencies and also to regulate them.
Akishev believes that the complexities to regulate the cryptos are in their inherent nature of functioning:
“Which are supranational in nature, and also are not someone’s obligation or guarantee, including the state. 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.”
He also said that as there is a huge wave currently in favour of the cryptocurrencies, people are more willing to take risks without properly analysing the associated risks and projected repercussions. Akishev believes that in case the bubble suddenly bursts, “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.”
He further said: “I still do not really understand what cryptocurrency is…it is a tool that does not have a normal issuer, a single centralized body, respectively, is not backed by anything and its value is based solely on speculative operations.”
Some experts like Financier Eset Butin believe that the act of mining can’t be considered as illegal and so it can’t be completely banned. Mining is individuals choice and decision. However, the expert believe the trading with cryptocurrencies requires proper regulations in place.
Butin said:
It will not be possible to build any restrictions in terms of home mining…A person is engaged in mining, paying for electricity. What [are the] problems?
Also Read: Central Bank of Indonesia Bans Bitcoins; Cryptocurrency Exchanges To Shutdown
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