After banning cryptocurrency exchanges in Russia and cracking down on mining operations, many users are seeking refuge elsewhere. One such place is Kazakhstan, which has welcomed them with open arms. However, there are one or two catches.
You may have heard that the Russian Federation is not exactly a crypto-friendly place. However, Kazakhstan is welcoming Russian cryptocurrency exchanges with open arms.
If you’re a Russian crypto exchange and you can’t operate in your home country anymore, this is good news! It means that there are plenty of opportunities for you in Kazakhstan as well. The country has everything going for it: low taxes and regulations, cheap electricity costs and lots of green energy (the latter being especially important since mining rigs consume quite a bit of power). These factors combined make Kazakhstan an ideal location for setting up new cryptocurrency projects.
Kazakhstan Gets Into The Crypto Game
However, there are one or two catches. The new laws will require exchanges to be registered with the government and also comply with KYC and AML regulations. They must collect information about their users, report suspicious activity and keep records of transactions for five years.
While these rules may sound strict, Kazakh exchanges are already complying with similar policies from other countries like Japan and South Korea. In fact, most of Kazakhstan’s cryptocurrency exchanges have already registered in neighboring Russia as well as China (which has banned trading).
Kazakhstan is becoming a hotbed for crypto adoption in Central Asia because its government has been consistently open toward cryptocurrencies since 2017. Last year it announced plans to create its own national digital currency called Sertificat which was used by 20 state institutions during testing phases before being scrapped altogether last November due to lack of interest from residents or businesses using it on a daily basis.
Kazakhstan, a country in the Central Asian region, has long been an attractive destination for crypto businesses. It’s seen an influx of new ventures and companies seeking asylum from Russia, who’s hostility towards crypto is well-known. The Russian government has made it difficult for startups to operate within the country by introducing strict regulations and even banning cryptocurrencies outright.
In addition to being welcoming towards businesses that are interested in relocating there, Kazakhstan also has favorable conditions for cryptocurrency mining operations. You see, there’s plenty of cheap electricity available thanks to hydroelectric plants built on its rivers (and those are owned by the state). This makes it easier for miners who want to set up shop without having high costs associated with their business model.