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Kazakhstan President Calls for Global Rules on Cryptocurrencies under UN Oversight

Last Updated September 23, 2020 12:04 PM
Samantha Chang
Last Updated September 23, 2020 12:04 PM

The president of Kazakhstan, Nursultan Nazarbayev, is urging the global community to work together to draft common rules regarding the use of cryptocurrencies. Nazarbayev said the current, disparate regulatory guidelines around the world cause confusion and inefficiency.

“It is necessary to start developing common rules,” Nazarbayev said May 17 at the 2018 Global Challenges Summit, as reported by TengriNews . “Most countries are actively exploring the possibility of adapting cryptocurrency to the current configuration of financial systems.”

He continued: “At the same time, we see completely separate actions of states in this issue. And these disparate actions will lead to inefficiency.”

Wants U.N. Oversight

The Kazakh president said it’s important to reach a global consensus regarding crypto regulations as the market grows. Accordingly, he suggested that the United Nations spearhead the efforts to aggregate rules.

“I propose that this initiative be implemented on the United Nations’ platform – the only body that is elected by the entire human society to solve very serious problems,” Nazarbayev said. “There is a need to build new effective mechanisms for dialogue between states.”

Nazarbayev said he believes the G7 and G20 forums, which are comprised of the world’s wealthiest industrialized countries, do not adequately represent the interests of the global community. Kazakhstan is not a member of either the G7 or the G20.

“The G7 and G20 formats — in which I participated more than once — in our opinion, does not embrace the global view of the world,” he said. “Therefore, we put forward the initiative of G-Global, which will allow us to take into account the opinion and interests of all countries.”

Kazakh National Bank Wants To Ban Crypto

The Kazakh president’s bullish outlook on virtual currencies clashes with Kazakhstan’s National Bank, which is considering banning crypto use and mining, as CCN.com has reported.

“We want to ban the exchange of digital currencies for the national currency,” said Daniyar Akishev, the chairman of Kazakhstan’s National Bank. “We want to prohibit the stock exchange’s activities in this area, as well as every type of mining.”

Akishev said he believes the ban is needed to protect the country’s citizens from scams and fraud. “Digital currencies are an ideal instrument for money-laundering and tax evasion,” he said.

Russian president Vladimir Putin. (Shutterstock)

However, it’s highly unlikely that Kazakhstan will ban crypto, as the five-member nations of the Eurasian Economic Union (of which Kazakhstan is a member) met just weeks ago to discuss how to leverage cryptocurrencies and blockchain to bolster their economies.

The Eurasian Economic Union (EAEU) is a post-Soviet economic bloc comprised of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. It’s Vladimir Putin’s answer to the 28-member European Union, except it’s smaller and far less wealthy.

Tota Kaliaskarova, the director of macroeconomic policy with the EAEU, said it’s important to discuss cryptocurrencies because they could have a dramatic impact on the Eurasian economy.

“This is a new phenomenon,” Kaliaskarova said. “The emergence and use of cryptocurrencies will affect monetary conditions in our countries and the macroeconomic stability of the entire EAES.”

Featured image from Shutterstock.