Kazakhstan Bank Purchases Bitcoin, Country to Establish Crypto Exchange

By: Henry Felix

Kazakhstan Bank Purchases Bitcoin, Country to Establish Crypto Exchange

September 30, 2022 10:10 PM

Financial institution and coin trading platform in Kazakhstan collaborate on what they call first joint transaction for cryptocurrency acquisition in the country. Meanwhile, the government of Kazakhstan has announced that it is prepared to expand crypto exchange in the country's financial center.


In Kazakhstan, the first cryptocurrency banking transaction clears the way for legally binding coin purchases.


Eurasian Bank, based in Almaty, and Intebix, a cryptocurrency exchange based in Kazakhstan, have announced that they have completed what they claim is the first cryptocurrency-related transaction in the country. The transaction involved a digital asset trading system, a banking organization, and an user. The transaction, which involved the purchase of cryptocurrency using local currency, was announced at the Digital Bridge 2022 forum.


According to a press release from Eurasian Bank, "this precedent makes it possible for Kazakhs to legally purchase cryptocurrencies for tenge," with the bank's proprietary solution allowing for "one of the lowest fees in the world for such a transaction." Talgat Dosanov, the Director of the Intebix Exchange, went even further, asserting:


"This is the very first time a cryptocurrency exchange has ever dealt with a bank on behalf of a customer on the entire Eurasian continent."


Kazakhstan's pilot regulations permitting cryptocurrency transactions were approved by regulators in May of this year. Participating crypto exchanges must obtain a license, and banks must follow the rules that have been established, before they can take part in the project. The government insists that the framework is secure and transparent enough to meet international standards for transaction monitoring.


The President of Kazakhstan was given a demonstration of how citizens can purchase cryptocurrency using local currency. If the trial is successful, President Kassym-Jomart Tokayev has said that his administration will back the expansion of the project to facilitate crypto asset exchange in the Astana International Financial Center (AIFC), the financial hub of the Central Asian country.


Tokayev emphasized Kazakhstan's ambition to become a global leader in the development of cutting-edge digital technologies, the cryptocurrency ecosystem, and legalized digital mining. According to him, "full legal acknowledgement will be granted if this financial product demonstrates further demand and security."


This past summer, the AIFC began testing a new system that would allow registered cryptocurrency exchanges to open bank accounts in the region. Halyk Bank, Altyn Bank, and Eurasian Bank, as well as trading platforms Intebix (known as Biteeu in the European Union and Australia), and Ataix Eurasia, are taking part in the trials. This preliminary run will continue until the year 2022.


This year will also see the release of a crypto card from Eurasian Bank. Coin holders will be able to make purchases with tenge using the digital currency once it is linked to an Intebix wallet. The bank is currently in negotiations with the National Bank of Kazakhstan to iron out the specifics. When it comes to assets, Eurasian Bank is in the top seven in Kazakhstan, and it also happens to be the market leader in retail banking.