How to use cryptocurrency in Kazakhstan?

Virtual currency and its main advantages

The list of advantages of crypto assets includes the absence of regulation by the government and state banks similar to that in classical finance. Recently, new laws have been actively adopted, and the main point of regulation in Kazakhstan now is conversion from crypto to fiat currencies.

Other advantages are:

• protection from failures;

• possibility of passive (investments) and active (trading) earnings;

• anonymity of the owner;

• deflation mechanisms that counteract the devaluation of money.

How to buy cryptocurrency in Kazakhstan

Virtual money is bought on specialized crypto exchanges with a regulator's license (for example, on ATAIX Eurasia). A special independent body at the Astana International Financial Center (AIFC) - the Astana Financial Services Authority (AFSA), performs the role of the regulator. We will talk about the platforms themselves later, but for now, we will consider the main ways to buy crypto assets - using a bank card, bank transfer and P2P/Peer-To-Peer (allowed only on platforms licensed in the Republic of Kazakhstan). To implement any of them, you first need to register on the selected crypto exchange.

Bank card

How to buy cryptocurrency using a card:

• the user logs into an account (for example, on Binance) > selects the option to buy crypto > selects the payment method by card (debit/credit);

• then selects the currency - crypto and fiat (national), enters the purchase amount > as a result, the amount of cryptocurrency will appear on the monitor, calculated automatically;

• then the person confirms the purchase by clicking on "Buy" and enters the details of his bank card.

If the transaction is successful, the specified amount appears on the "Fiat and Spot" wallet.

Bank transfer

You can pay for cryptocurrency using the account details. The amounts of such transactions are usually much higher and are credited with a slight delay - from a few hours to 3 days. This method is more suitable for arbitrageurs, medium and large traders, legal entities, besides it is much cheaper. This is especially convenient if the exchange and the client have an account in the same bank: the transfer is as fast and cheap as possible. This method of balance replenishment is usually available in the bank's mobile application.

P2P

To purchase crypto in Kazakhstan on licensed P2P platforms, the user:

• registers on the service, goes through the KYC (know your customer) procedure;

• goes to the "P2P Trading" tab, where all available buy and sell orders of other users are displayed;

• places their sell order at the desired price/or selects a suitable transaction from the list.

The advantages of this method of purchase are the globality of the P2P marketplace, safe transactions under the arbitration of the trading platform, a choice of payment options.

Is cryptocurrency prohibited in Kazakhstan: economic status and market dynamics

Virtual currency in the Republic of Kazakhstan is regulated by a special law on digital assets. Based on its articles, crypto is a property asset, such as things, money, TM, etc. However, a digital asset, according to the law of the Republic of Kazakhstan, is not a means of payment.

The same law does not allow the circulation of cryptocurrency and its issuance in Kazakhstan. However, the prohibition does not apply to the AIFC. "Astana" FinCenter considers crypto as a unit of account, an exchange and savings asset and allows its participants to trade digital services for fiat and exchange one currency for another. For all this, legal entities are required to have a DATF license and meet the criteria of the AMI Rules:

• fairness and transparency of trading procedures and investments;

• availability of the platform and technical resources for its safe operation.

They are also required to provide annual reporting on the quality of transactions, their cost, speed, commission, etc.

Cryptocurrency and the risks associated with it

What causes Kazakhstan’s authorities to distrust cryptocurrencies?

The risks are associated with the fact that the crypto market is characterized by high price volatility. Due to this, it is difficult to regulate and is a favorable environment for speculation. In the wake of crypto's popularity, many investors got burned on it, encountering fraudulent schemes and losing a lot of money. There were serious scandals and stock market crashes. It even reached the point of absurdity when individuals on the street traded real metal coins with the Bitcoin logo.

Licensed crypto exchanges

Where is the best place to buy crypto? Risk-free – only on a licensed platform.

At the beginning of this year, the AIFC licensed the platforms ATAIX Eurasia, Bybit, Binance, Biteeu, BigOne, CaspianEx, Xignal&MT, Delta DA. The listed exchanges:

• are under surveillance for possible money laundering;

• are integrated with several second-tier banks in Kazakhstan that work with cryptocurrency: due to the possibility of depositing directly into the account via bank transfer or card, the trading procedure is simplified for counterparties;

• confirm their reliability by the number of transactions carried out on them and positive reviews.

ATAIX Eurasia deserves special attention – currently the largest crypto exchange in Kazakhstan with an AIFC license. The main advantage of the exchange is the established fiat deposit and withdrawal channels through many second-tier banks (Halyk Bank, Altyn Bank, Zaman Bank, Freedom Bank, Bereke Bank, Nurbank, BCC, JusanBank and Qazpost). With four banks, namely HomeBank, Altyn-i, Bereke and BCC, the possibility to instantly top-up the balance using mobile banking has been implemented.

What cryptocurrency transactions are available on Kazakhstan exchanges

Authorized exchange transactions are relatively regulated in the country. In addition to spot trading and crypto exchange on exchanges, the issuance of some types of stablecoins is permitted (stablecoins - virtual money with a more stable rate tied to some fiat currency). The most popular and largest stablecoin in the world by capitalization at the moment is Tether (USDT), the rate of which is tied to the US dollar. The platforms also provide a wallet option for storing crypto assets.

Discussions with platforms regarding the introduction of new products (margin trading, options, staking, etc.) are in progress.

What to buy in Kazakhstan for cryptocurrency

You can legally pay with cryptocurrency (for example, in stores) in Australia, Japan, the USA and Canada. In Kazakhstan, payment for goods and services is only available for tenge, and virtual currency is not yet an official means of payment. At the same time, Kazakhstani users can make purchases for crypto in other countries.

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As a promising financial instrument, cryptocurrency is assessed in polar terms today. However, Kazakhstan, aiming to integrate as much as possible into the global economic system, strives to become a full-fledged participant in the global crypto market. Internal difficulties and geopolitics hinder this, but the state is confidently liberalizing its economy and actively digitalizing.

PAYGATE will be happy to help with the digitalization of your business specifically. Our team will develop a convenient and understandable payment architecture for you and show you how to implement it. Come with your problem and we will find the best solution together!