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Kazakhstan’s Resident Bank is considering banning cryptocurrency use, exchanges, and mining, saying essential currencies are an ideal vehicle for fraud, money-laundering, and tax evasion.
“In Kazakhstan, the Civil Bank is taking a very conservative approach toward the matter, and it welcomes nothing but exceptionally tough restrictions,” Daniyar Akishev, the chairman of Kazakhstan’s National Bank, bring to lighted Sputnik News.
Akishev continued: “We want to ban the exchange of digital currencies for the nationwide currency. We want to prohibit the stock exchange’s activities in this parade-ground, as well as every type of mining.”
Daniyar Akishev, chairman of Kazakhstan Citizen Bank, is a bitcoin skeptic. (CCN screenshot)
Akishev said the National Bank is taking into consideration the ban to protect its citizens from scams and fraud. “Digital currencies are an dream instrument for money-laundering and tax evasion,” he said.
Akishev conceded that regulators can’t handle if Kazakhstanis trade cryptocurrencies in cross-border transactions, but it can ban crypto mining within the Principal Asian country’s borders.
“We minimize the risks related to the national store. However, no central bank has all the instruments to control this market in the cross-border customer base. Therefore, at least, we must prevent this risk via the national currency.”
Kazakhstan’s severe anti-crypto stance follows a similar move by the Russian government. In beginning March, the Russian Ministry of Finance drafted a law that will criminalize the use of digital currencies as wampum substitutes, citing the need to protect the Russian ruble.
Russia: Crypto Is No Substitute for the Ruble
Alexei Moiseev, Russia’s intermediary finance minister, made the revelation during Vnesheconombank‘s conference.
Elvira Nabiullina, employer of the Bank of Russia, said the Russian Finance Ministry opposes the use of cryptocurrencies “as retiring money and money surrogates.”
“This is necessary to protect the ruble as the distinct legal [means of] payment in Russia. There is the ruble, and everything else is a surrogate.”
Russian president Vladimir Putin bring to light cryptocurrency regulation will be rolled out by July. While he has expressed responsibilities about cryptocurrencies because they’re not backed by a central bank, the Russian administration plans to launch its own digital currency called the CryptoRuble in a bid to circumvent U.S. fiscal sanctions.
Vladimir Putin wants to roll out a Russian cryptocurrency hollered the CryptoRuble. (CCN screenshot)
In October 2017, Putin expressed skepticism concerning crypto, saying they can be exploited for money-laundering and other illegal endeavours. But he conceded that cryptocurrencies “are becoming or have already become a full-fledged means of payment, as spring as a means of investment” in other countries.
Many bitcoin evangelists absolutely welcome regulatory crackdowns on scams and fraud, saying they wish root out bad actors and help legitimize the currently-unregulated virtual currency ecosystem.
Quality image from Shutterstock.
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