Economist suggests Kazakhstan regulate cryptocurrency market
Kazakhstani economist Ruslan Sultanov believes that the cryptocurrency market in Kazakhstan needs a balanced approach, as he said in an interview with Economykz.org. According to the expert, this area can no longer be ignored due to its popularity among Kazakhstanis and global trends that saw rapid development back during Donald Trump’s first term in office. However, Sultanov highlighted that an extremely fluctuating market requires special oversight.
«Personally, I’m not a big fan of cryptocurrencies. The main issue is that they’re not backed by any real assets and are highly volatile,» the economist said.
He considers the value of such assets to rely exclusively on trust and speculation, making them excessively unstable. Therefore, Sultanov proposes a set of measures to control the market.
First, regulated crypto-to-fiat channels should be established. This move would allow the restoration of governmental and banking system control over shadow financial flows.
Next, Sultanov advocates issuing stablecoins backed by the tenge, which would ensure greater stability and emerge as a reliable alternative to traditional cryptocurrencies. The expert also emphasized the necessity of strict compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) standards to combat money laundering and strengthen financial safety.
Finally, access to cryptoassets should be restricted for inexperienced citizens to protect them from risks, limiting their availability to proficient investors.
According to Sultanov, the implementation of the suggested model would be beneficial in various ways, including an increase in tax revenue driven by the legalization of the market (where approximately 91% of transactions are conducted beyond regulatory control), enhanced governmental oversight and a reduction in systemic risks linked to cryptocurrency volatility.
«I firmly believe that clear and consistent regulation is necessary. It’s too late to ban them — but it’s not too late to manage them wisely,» the expert concluded.
Sultanov also noted that only a systemic approach would enable Kazakhstan to find a balance between innovation and financial stability.
