Kazakhstan to Determine Position on Bitcoin in 2014

The authorities of the People’s Republic of China together with the EBA were the first two bodies to declare their position on Bitcoin and other cryptographic currencies.

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Kazakhstan to Determine Position on Bitcoin in 2014

The authorities of the People’s Republic of China together with the EBA (European Banking Authority) were the first two bodies to declare their position on Bitcoin and other cryptographic currencies, what also has set the trend to populate warnings or praises on the virtual coins for other countries of financial institutions. It cannot be denied that most revelations carry negative concerns, but the regularity provides no shocks or drops of prices. First attacks have definitely tempered the Bitcoin.

The 4th of February has also featured another statement, this time - from Kazakhstan. The Central Bank Governor Kairat Kelimbetov has claimed that the National Bank of Kazakhstan will classify the Bitcoin this year, and likely the digital money will receive the definition of a Ponzi scheme. The statement was made on a press conference and was populated by Tengrinews.kz, a Kazakhstan news site.

Mr. Kelimbetov has also approved that the Finance Ministry of Kazakhstan is collecting information on Bitcoin to make the correct decision built on facts, not speculations. He added:

“The issue is rather complicated. Some claim the currency is a good tool of money laundering and an absolute evil. That’s why some monetary authorities, like those in China, have banned Bitcoin.”

Without doubt the current situation and the suggestion to determine the rank of the Bitcoin seem to be playing for time. The discussion was started in December, but no official opinions were published since then. During the last year’s conversations the vice minister of finance Ruslan Dalenov allowed to voice the assumption that acceptance of Bitcoin might harm the local banking system. Any kind of ban or prohibition would be made in favor of financial institutions. From his point of view money laundering possibilities are not considered as the main drawback of the digital currency. There others, traditional and reliable methods:

“There is a cheaper and clearer means – cash. This is where we should start our fight.”

Mr. Dalenov also emphasized that cryptocurrencies does not violate any laws or rules of the country. The main consideration is the competition with banks that might lead to damage of the system, as well as unemployment and other consequences chained to the decision.

The previous official publications commonly described the Bitcoin as an investment carrying extraordinary risks, and aimed to protect individual users and legal entities from the engagement in the environment. The harshest accusation was made by the Central Bank of Russian Federation as virtual money was seen as accomplices of terrorism. On the 31st of January Estonia has decided to rank Bitcoin among other Ponzi schemes. Like Kazakhstan, it borders with Russia and it seems logical to the experts that the revelations have come in a row. However, while the country is still working on the status to be awarded, some respectful bankers from Russia issued pleas to allow Bitcoin to progress and enter the market.

BitLegal follows the evolution of situation and has already updated the data on Kazakhstan.

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