Kazakhstan to reportedly allow banks to process crypto purchases

A new project in Kazakhstan aims to enable local crypto businesses to provide crypto investment services legally.

The Kazakhstan government is reportedly planning to officially authorize local banking institutions to open bank accounts for cryptocurrency transactions.

Several banks in Kazakhstan will soon be officially approved to service companies and businesses providing exposure to cryptocurrencies like Bitcoin (BTC), local news channel Khabar 24 reported Sunday.

Citing executives from the Data Center Industry and Blockchain Association of Kazakhstan, the report notes that it is unclear what financial institutions or banks would participate in the pilot project. Cryptocurrency exchanges would start cooperating with banks by signing up for the project at Astana International Financial Centre, a major financial hub in Kazakhstan.

The pilot project will reportedly run for one year, aiming to enable local crypto businesses to legally provide crypto investment services and allow investors to buy and sell cryptocurrencies like Bitcoin safely. As part of the project, the Kazakhstan government also intends to assess the potential risks associated with digital currency investment as crypto trading is not yet legally adopted in the country, the report notes.

The Data Center Industry and Blockchain Association of Kazakhstan did not immediately respond to Cointelegraph’s request for comment.

Related: Kazakhstan’s government to create roadmap for developing crypto market

The news comes amid the Republic of Kazakhstan drawing increased attention from global cryptocurrency miners due to an ongoing crypto mining crackdown in China. Some of the largest Chinese crypto mining companies, Bitmain and Canaan, have started working with entities in Kazakhstan to run mining facilities and services in the country.

Despite the crypto mining industry increasingly gaining momentum in Kazakhstan, it is still too early to suggest a serious relocation of Chinese crypto mining powers to the country, the association’s president Alan Dordjiev noted.