Kazakh National Bank warns about risks of cryptocurrencies

ASTANA. KAZINFORM Activities of organizations providing investment services to the public using cryptocurrencies in Kazakhstan are not regulated by the National Bank, this was announced by the press service of the financial institution.

Such organizations promise interest rates higher than one can find on the market. They also pay high fees for attracting other clients as it helps ensuring money in circulation. And in case there is no money in circulation or if there is a lack of them to meet their current obligations these organizations are closed, and all payments are terminated.

Neither do cryptocurrencies have reference to official monetary units or any other real assets nor is there an entity legally responsible for the transactions. Cryptocurrencies' circulation is completely decentralized and cannot be regulated.

"People investing money through such organizations do not have any legal guarantees of their return, as in accordance with civil legislation of the Republic of Kazakhstan accession and investing into them by individuals is considered voluntary as there are no written agreements. It should be noted that activities of such organizations are not regulated by the National Bank of Kazakhstan", statement reads.