Billions Lost? How a National Crypto Bank Could Save Kazakhstan’s Crypto Market

Kazakh lawmaker Azat Peruashev has proposed the establishment of a National Crypto Bank to regulate digital assets and curb illegal transactions. In a formal inquiry to Prime Minister Olzhas Bektenov, he highlighted the growing demand for digital currencies and the need for a structured system. The lack of regulation has created an underground economy, with billions exiting Kazakhstan untaxed. The new bank, along with the National Bank and commercial banks, would regulate the crypto exchange market, protect investors, and boost tax revenues.

Kazakhstan will be at risk of lagging behind the world if these challenges are not addressed. Countries without clear digital asset policies often face economic instability. A National Crypto Bank would ensure security, prevent illicit activities, and provide a stable environment for investors. This initiative could help the nation move toward a structured financial system with digital financial instruments.

The Hidden Challenges: Fraud, Tax Losses, and Illegal Trading

The absence of crypto market regulation has forced 90% of Kazakhstan’s crypto transactions underground. Tax evasion and fraud schemes are carried out through unlicensed platforms, placing citizens at financial risk. Lack of regulation enables illegal financial flows and money laundering without adequate monitoring.

Peruashev emphasized that many individuals are losing funds to scams and unverified platforms. A National Crypto Bank could safeguard investors and bring digital asset circulation into the legal domain. A controlled environment would prevent economic losses and strengthen tax revenue.

Fraudulent platforms often manipulate investors into handing over funds that disappear without accountability. A structured regulatory framework could control such exploitation and protect financial interests.

Lessons from Global Leaders: What Kazakhstan Can Learn

Countries such as the U.S. and Switzerland have managed to incorporate crypto banking into their economies. Anchor Digital Bank, Kraken Bank, SEBA Bank, and Sygnum Bank are some institutions that offer legal pathways for crypto trading while adhering to financial regulations.

Kazakhstan lawmakers are aware of the necessity for reforms. President Kassym-Jomart Tokayev has encouraged developing the country’s crypto infrastructure. Lawmaker Ekaterina Smyshlyaeva has suggested permitting private crypto trading on licensed platforms and increasing supervision over operators. She further highlighted the need to update laws on crypto crimes.

Although the government previously restricted crypto mining due to power concerns, Kazakhstan remains an attractive hub for global investors. The country’s low energy prices continue to appeal to Bitcoin mining companies, with firms like Canaan expanding operations. A comprehensive regulatory approach could enhance investment and financial stability.

Shaping the Future: A Regulated Crypto Economy

Kazakhstan currently mandates that all crypto transactions occur through the Astana International Financial Center (AIFC), where regulated platforms such as Binance and Bybit operate. However, many transactions still take place outside this framework. A National Crypto Bank could centralize digital asset operations, improve crypto market regulation, and ensure legal compliance.

A well-regulated crypto world would provide financial stability and attract both domestic and international investors. Moreover, maintaining crypto transactions domestically would provide more tax income, leading to economic development and technological advancement.

Final Thoughts: A Secure Digital Future

As the world’s financial landscape transforms, Kazakhstan needs to implement digital financial tools to stay economically competitive. Creating a national crypto bank would be a regulated space, protecting investors and increasing tax returns. With increasing governmental interest in cryptocurrency legalization, this project is a landmark towards defining Kazakhstan’s future in finance.

Promoting crypto innovation under strict regulations would make Kazakhstan a key player in the international digital economy. A National Crypto Bank would spur financial development while maintaining security and compliance. With a clearly defined legal outline, the nation can balance stability and innovation and set the stage for a viable, well-controlled crypto market.