The authorities of Kazakhstan is reportedly planning to officially authorize local banking institutions to open bank accounts for cryptocurrency transactions.

Several banks in Kazakhstan will soon be officially canonical to service companies and businesses providing exposure to cryptocurrencies like Bitcoin (BTC), local news channel Khabar 24 reported Dominicus.

Citing executives from the Data Center Manufacture and Blockchain Association of Kazakhstan, the report notes that information technology is unclear what financial institutions or banks would participate in the pilot project. Cryptocurrency exchanges will be able to cooperate with banks by signing upward for the projection at Astana International Financial Heart, a major fiscal hub in Kazakhstan.

The pilot projection will reportedly run for one year, aiming to enable local crypto businesses to legally provide crypto investment services and allow investors to buy and sell cryptocurrencies like Bitcoin safely. Equally part of the project, the Republic of kazakhstan government also intends to assess the potential risks associated with digital currency investment every bit crypto trading is not yet legally adopted in the state, the report notes.

The Data Center Industry and Blockchain Association of Kazakhstan did non immediately respond to Cointelegraph'due south request for annotate.

Related: Kazakhstan's authorities to create roadmap for developing crypto market

The news comes amid the Republic of Kazakhstan cartoon increased attention from global cryptocurrency miners due to an ongoing crypto mining crackdown in Red china. Some of the largest Chinese crypto mining companies, Bitmain and Canaan, take started working with entities in Republic of kazakhstan to run mining facilities and services in the land.

Despite the crypto mining industry increasingly gaining momentum in Republic of kazakhstan, it is withal also early on to suggest a serious relocation of Chinese crypto mining powers to the state, the association's president Alan Dordjiev noted.