National Bank of Kazakhstan hindering cryptocurrency activities

The National Bank of Kazakhstan has submitted hindering some cryptocurrency activities in the country.

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The chairman of the central bank, Daniyar Akishev, told in the meeting held in Astana on Wednesday that this is “to guard the public against unsubstantiated risks,” the publication convey.

“In short terms, the high volatility of the price of the cryptocurrencies allows the owner a chance to earn money on unsubstantiated transactions,” Akishev saying.

But again he disclosed that it may drive a significant damage from the loss of funds by citizens in the future.

He said,

“We sent our proposals to the government, in which we suggest carrying out a series of tougher measures, including prohibiting the exchange of the national currency for cryptocurrencies, prohibiting the activities of some companies that generate cryptocurrencies and so on.”

Amending Legislation

Akishev from the dice of the conference said on Wednesday that the bank and government are “developing an approach to the issuing and circulation of cryptocurrencies.”

Also Read: South Korea ban raising funds through cryptocurrencies

The statement made by him is recapitulating that amendments to the legislation. As it will refine to govern them and that presently their legal status has not been recognizes.

He believes that “the complexity is present in the features of cryptocurrencies. The state cannot determine the actual value and safety of funds based on cryptocurrencies. Therefore, which contains no security in the form of real assets and legally bound persons.”

The people are really looking to invest in cryptocurrencies but they are not taking appropriate measures to ensure the safety of their assets.

He exclaimed, “What will be the result if the bubble suddenly burst? What will happen to the people who invested? He guessed that the people will approach the state and say, ‘why did you not assist in time?’

Therefore, he warned people in advance that these operations are very risky.

Akishev explains by Kazinform admitting:

“I still do not really understand what cryptocurrency is…it is a tool that does not have a normal issuer, a single centralized body, respectively, is not backed by anything and its value is on solely on speculative operations.”

Is It Possible to Bar Mining in Kazakhstan?

Hearing the statements by the chairman, Tengrinews asked some crypto experts to decide whether it is practical to ban mining in Kazakhstan.

Also Read: Dutch bank flustered about how much electricity bitcoin consumes

They “accepted that it would be virtually impossible to bar the mining process. However, they agree that governing appropriate measures should introduce,” the publication reported.

Financier Eset Butin conveyed that mining process does not carry any risks for a country. He renowne that mining is not ban by law and it is each person’s personal business. But still risks whether to carry out mining, including that:

“It will not be possible to build any restrictions in terms of home mining. Therefore, a person is engaged in mining, paying for electricity. What [are the] problems?”

Lawyer Vitaly kazantsev noted that “before prohibiting the mining process in Kazakhstan. It will be significant to list this process a comprehensive definition, and this can be difficult,” the publication described.

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Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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