Monday, October 25, 2021

Kazakhstan Considering Full Ban on All Cryptocurrencies

Kazakhstan Considering Full Ban on All Cryptocurrencies

Kazakhstan is looking at a possible ban on every cryptocurrency in today’s market. The country’s central bank wants to seal off all trading and crypto-mining efforts immediately, reportedly to protect the country’s official currency called the “tenge”.

Also see: How to Scale Bitcoin and Cryptocurrencies at the Network Layer, With Emin Gün Sirer

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Bank chairman Daniyar Akishev announced on Friday:

“In Kazakhstan, the National Bank is taking a very conservative approach towards the matter, and it welcomes nothing but extremely tough restrictions. Therefore, we want to ban the exchange of digital currencies for the national currency. We want to prohibit the stock exchange’s activities in this area, as well as every type of mining.”

This Looks Familiar – Kazakhstan Adds Another Bank to the List

The move is the latest in a long line of global blockades against cryptocurrency innovation and trading. Bitsonline recently reported that Canada’s Bank of Montreal (BMO Group) had enforced a new policy preventing users from purchasing digital currencies with business or personal credit and debit cards.

Other Canadian banks to take similar action include the Royal Bank of Canada and Toronto-Dominion Bank (TD Bank) – the country’s two largest financial institutions.

In addition, several establishments in the U.S. such as JPMorgan, Citigroup, Capital One and Bank of America have sought to prevent customers from purchasing cryptocurrencies, either with credit cards or bank-authorized checking accounts.

Meanwhile in the U.K., organizations like Halifax, the Bank of Scotland and MBNA have all enforced new regulations to prevent customers from getting their hands on digital assets.

Why Are They Doing This? A Two-Sided Coin

Many of the banks claim that such bans are necessary thanks to the volatile nature of cryptocurrencies, and that they are only trying to protect the finances of their customers.

However, it can also be argued that traditional monetary establishments cannot compete with the decentralized environment digital coins create, and thus banks are trying to “cut them loose” or prevent customers from getting in too deep before they’re shut out for good or considered “too old-fashioned.”

In an unsurprising argument, Akishev claimed the primary reason for the ban would be to protect the identities of customers and prevent illicit activities such as tax evasion and money laundering:

“We minimize the risks related to the national market. However, no central bank has all the instruments to control this market in the cross-border market. Therefore, at least, we must prevent the risk via the national currency.”

He further explained that the decision is currently backed up by the “majority” of Kazakhstan’s state bodies.

Is Kazakhstan making a big mistake? Post your comments below.

Images via Pixabay,

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