During a meeting with representatives of the financial sector on Friday in Almaty, Kassym-Jomart Tokayev, President of Kazakhstan, expressed his opinion on the current state of affairs of the country's cryptocurrency industry. The details of the speech were posted on the official website of the President of the Republic of Kazakhstan, and translated by Cointelegraph:

Cryptocurrencies are an objective cistron that cannot exist but ignored. Information technology is necessary to clearly evaluate their potential to influence the current fiscal system.

President Tokayev speaking at a conference | Source: Akorda.kz

He then added:

Therefore, work should be resumed on the formation of a counterbalanced regulatory environment for the creation of cryptocurrency exchanges in the state. Otherwise, it turns out that nosotros are the number 2 state in the globe for cryptocurrency [Bitcoin] mining, and nosotros practically do not see financial returns.

According to data from the University of Cambridge, Kazakhstan's share of the Bitcoin (BTC) network'south total hash charge per unit amounts to 18.ten% — the second in the world behind the Usa (35.xl%) and ahead of Russia (xi.23%). However, there exists a large number of individuals carrying on Bitcoin mining with disputed legal condition in the country. Gray area miners account for as much as fifty% of all cryptocurrency mining activity in Kazakhstan by some estimates.

In the context of President'southward Tokayev statements, the lack of cryptocurrency regulation results in, for better or worse, very little tax acquirement beingness captured by the authorities despite the manufacture's sharp growth in contempo years. Nevertheless, President Tokayev discussed the possibility of introducing a digital tenge every bit a "representative of the financial arrangement" and further reiterated his back up for fintech development in Kazakhstan:

Our financial institutions must seize the take chances and tackle ambitious goals. It is necessary to not only copy someone else'southward feel but to develop and promote new formats of services that go across the borders of Kazakhstan. The state will do its utmost to promote these initiatives.