Kazakhstan is poised to legalize crypto as Russians flock to the country

Kazakhstan is ready to legalize a mechanism to convert cryptocurrencies into cash if there is demand, President Kassym-Jomart Tokayev said, according to local news agency Informburo on September 28.

Speaking at the Digital Bridge 2022 international forum, Tokayev emphasized that Kazakhstan aims to become an international leader in digital technology, cryptocurrency ecosystem and regulated mining. He noted that the government of Kazakhstan has drafted amendments to national law to pilot a crypto conversion mechanism at the Astana International Financial Centre.

– We are ready to move on. If this financial instrument demonstrates its further relevance and security, it will certainly receive full legal recognition, Tokayev said.

The country’s president is said to have visited a joint stand of the large local lender Eurasian Bank and the crypto exchange Intebix at the Digital Bridge 2022 event.

According to local reports, Eurasian Bank and Intebix announced that they jointly completed the bank’s first regulated crypto purchase for fiat. The precedent has marked a major milestone in Kazakhstan’s crypto adoption, allowing the Kazakh people to legally purchase crypto for the national currency.

Other companies in the pilot crypto projects include crypto exchanges such as ATAIX as well as Kazakhstan’s largest bank, Halyk Bank and Altyn Bank.

The news comes as thousands of Russians enter Kazakhstan just a week after Russian President Vladimir Putin announced a partial mobilization of reservists to fight in Ukraine. On September 21, Halyk Bank suspended the use of Russia’s Mir payment card due to sanctions warnings from the US Treasury Department.

Kazakhstan is not the only country that has emerged as a popular destination for Russians leaving the country and has worked to increase crypto adoption. Neighboring Georgia has also moved to introduce new crypto regulations to become a global crypto hub.

Related: Russian officials approve use of crypto for cross-border payments

While countries like Georgia and Kazakhstan appear to be welcoming crypto along with Russians fleeing mobilization, Europe has grown increasingly concerned about Russians turning to crypto to access their money. After capping Russian payments to European crypto wallets at €10,000 in April, the EU is now also planning to ban Russian citizens and entities from holding any assets in EU crypto wallets.

As previously reported, Russia has relied heavily on foreign crypto infrastructure to conduct cryptocurrency operations. The Bank of Russia has repeatedly argued that the country should not legalize any local crypto exchanges.