Kazakhstan President Tokayev sees no benefit in crypto mining

Kassym-Jomart Tokayev, the president of Kazakhstan, talked about his opinion on the current situation of the cryptocurrency industry in the country during the meeting with the financial sector’s representatives in Almaty on November 19. The official website of the Republic of Kazakhstan’s President displayed the complete details of the speech. TheCoinRise translated the outlines of the speech here. 

Tokayev said that we could not ignore the fact that crypto is an objective factor. There is a serious need to evaluate its potential to influence the existing financial system. He further added:

“As a result, action on establishing a reasonable and balanced regulatory environment for the establishment of crypto exchange platforms in the country should be continued. Otherwise, it seems that we are the world’s second-largest cryptocurrency [Bitcoin] mining economy, with basically no financial gains.”

Crypto mining scene in Kazakhstan

Recently, as TheCoinRise reported, the country has regulated limiting the number of crypto investments investors can make.

The data from the University of Cambridge, Kazakhstan, share a hash rate of 18.10% of the total Bitcoin network, which is the second biggest contribution after the United States (35.40%). However, the country still has a large number of individuals who mine Bitcoin amidst the country’s disputed legal status.

Let’s examine the statements by Kazakhstan’s president. It is clear that despite the industry’s sharp growth in recent years, the lack of crypto regulation in the country resulted in very little tax revenue collection by the government.

Presiden Tokayev, however, displayed the progressive behavior by discussing the possibility of bringing a digital tenge (CBDC) as a representative of the country’s financial system. He further reiterated his support for fintech development in the country.

Our financial institutions must grab the opportunity and pursue aspirational objectives. It is crucial to establish and promote innovative service forms that extend beyond Kazakhstan’s borders, rather than simply copying someone else’s knowledge.