Russian users are welcomed by crypto exchanges in Kazakhstan, but there’s a catch

Despite the recent Western sanctions against Russia and some cryptocurrency exchanges continuing to accept Russian citizens, there are certain restrictions.

Late September saw Kazakhstan’s President Kassym Jomart Tokayev witness the first fiat-tocrypto purchase made by a local bank, the Eurasian Bank.

Intebix is a local cryptocurrency exchange that allows clients to purchase crypto using the local currency, the Kazakhstani Tenge (KZT).

According to Talgat Dosanov, Intebix CEO and co-founder, Intebix does not limit its users to Kazakhstani citizens. The crypto exchange will also service foreigners who visit the country. He stressed that Intebix’s cryptocurrency transactions can only be accessed by card holders of Kazakhstan’s banks such as the Eurasian Bank.

Dosanov stated that foreign nationals are welcome at Intebix but will need a local card in order to benefit from the crypto-to fiat transactions.

Intebix only supports crypto transactions for verified customers, and local banks check every potential client to ensure they are sanctioned. Dosanov said:

Intebix will accept Russian nationals not on sanction lists. However, they will need to go through a rigorous compliance check and open an account at Eurasian bank in order to be eligible for the crypto-to fiat transactions.

After Russian President Vladimir Putin announced partial mobilization in September, Kazakhstan was a top destination for Russian nationals looking to avoid being called up for fighting in Ukraine. According to reports, around 200,000 Russians fled mobilization and entered Kazakhstan on Oct. 6.

According to reports, major banks in Kazakhstan, including Halyk Bank suspended Mir’s use as a payment system, following sanctions warnings from the United States Treasury Department.

Other than boycotting Mir banks, some Kazakhstan banks have also stopped accepting payments from Russian branches like Sberbank. This has caused them to sell their local businesses.

Intebix crypto-exchange is open to foreigners but remains committed to complying with all sanctions.

“We must comply with all regulations as we are a regulated exchange. Dosanov stated that we constantly monitor the situation to ensure we are operating within the regulatory framework.

Intebix does not restrict Russian citizens from its platform, as the firm is regulated under the Astana International Financial Centre. Biteeu, Intebix’s European branch, has stopped onboarding Russians due to EU sanctions.

Dosanov, a Kazakh businessman and son of Alijan Ibragimov (local oligarch), co-founded Biteeu with Shukhrat Ibragimov in 2019. Biteeu cofounder Ibragimov is a member of the board of the Eurasian Bank since 2017. After his father, a co-founder of ERG and a major shareholder, he was appointed to the board as a manager at Eurasian Resources Group (ERG).

Dosanov claims that Ibragimov was the only investor in Biteeu/Intebix. Ibragimov is the main reason Eurasian Bank is the most crypto-friendly bank in the area. Dosanov said that he believes in crypto and sees opportunities.

Similar: Binance gets a permanent license from Kazakhstan to offer digital asset services

Kazakhstan is now one of the most important crypto mining centers in the world. Kazakhstan has been active in adopting policies to encourage crypto adoption. In June 2022, the country officially authorized crypto exchanges to open bank account.

Binance, one the largest crypto exchanges in the world, was granted in-principle approval in August to be a digital trading facility. It also provides custody services in AIFC. Binance appointed Zhaslan Madiev, an ex-deputy minister at the ministry for digital development, to be director of Binance Kazakhstan on Oct. 19.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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